FTX is moving into another major phase of its bankruptcy repayment process, announcing that approximately $2.2 billion will begin flowing to eligible creditors starting March 31, 2026. The update, issued by FTX Trading Ltd. and the FTX Recovery Trust on March 18, marks one of the most significant distribution steps yet under the exchange’s restructuring plan.
The announcement also outlines a separate timeline for preferred equity holders. While creditor distributions are set to start at the end of March, the first preferred equity payments are scheduled for May 29, 2026, with an April 30, 2026 record date. Together, these milestones show that the FTX estate is advancing on multiple fronts as it continues returning value to claimants.
Creditor distributions begin March 31
According to the announcement, eligible claimants in both convenience and non-convenience classes must complete all required pre-distribution steps before funds can be released. Payments will be processed through one of three designated providers: Bitgo, Kraken, or Payoneer. FTX said creditors who have satisfied the requirements should expect to receive funds from their selected provider within one to three business days beginning March 31.
The estate will send distributions in U.S. dollars to those service providers. From there, creditors will have different access options depending on the platform they chose during onboarding. Bitgo and Kraken allow users to withdraw fiat currency or convert balances into digital assets or stablecoins before transferring them to external wallets. Payoneer, by contrast, supports direct fiat transfers to local bank accounts, subject to applicable regional rules and minimum thresholds.
FTX emphasized that creditors must complete several eligibility steps before participating. These include Know Your Customer verification, submission of tax forms, and onboarding through the FTX Customer Portal with a selected distribution partner. The company also noted that claimants may choose only one provider, and that selection cannot be changed after onboarding is completed.
Some claim classes reach full repayment
The distribution levels vary by claim class under the priorities established in the Chapter 11 plan. Each class reflects a different type of creditor exposure, and the latest payment round increases cumulative recoveries across several groups.
Class 5A, which covers dotcom customer entitlement claims tied to international platform users, is set to receive an additional 18%. That will bring the cumulative recovery rate for that class to 96%. Meanwhile, Class 5B, representing U.S. customer entitlement claims, will receive another 5%, lifting cumulative recovery to 100%.
FTX also said that Classes 6A and 6B, which relate to non-customer obligations such as general unsecured claims and digital asset loan claims, will each receive 15% in this round. As a result, both classes will reach 100% cumulative recovery.
One of the most notable details in the update concerns Class 7, the convenience claims category generally associated with smaller claims. FTX said this class is expected to reach 120% cumulative recovery, meaning recoveries will exceed the face value of the original claims under the restructuring framework.
Preferred equity payments set for May 29
Separate from the creditor process, FTX disclosed a new timeline for preferred equity holders. The estate has set April 30, 2026 as the record date for the first preferred equity distribution, and the initial payments are scheduled for May 29, 2026.
These payments will be made through the Preferred Shareholder Remission Fund Trust. To qualify, holders must complete ownership certification, satisfy verification requirements, submit tax documentation, and be listed as holders of record on the FTX docket as of the record date. In other words, eligibility depends not only on ownership status but also on timely completion of the required administrative steps.
A key milestone in the FTX restructuring process
The latest announcement underscores how far the FTX bankruptcy process has progressed since the exchange’s collapse. Rather than a general statement about future intentions, the update provides concrete dates, distribution channels, and class-by-class recovery levels. For creditors, that level of detail matters: it defines both the expected payment timeline and the procedural requirements necessary to receive funds.
It also highlights the uneven but increasingly advanced state of recoveries across claim categories. International customer claims are nearing full repayment at 96%, U.S. customer claims are set to reach 100%, and certain non-customer claims will also be made whole. Convenience claims, meanwhile, are positioned to recover 120%, making them one of the standout categories in the plan.
Even so, actual receipt of funds still depends on execution. Creditors must ensure that identity checks, tax submissions, and provider onboarding are complete. Because provider selection becomes final after onboarding, claimants are effectively being asked to make a one-time operational decision that will determine how they receive or access their distribution.
With the March 31 creditor payout date approaching and preferred equity payments scheduled for late May, FTX’s restructuring is entering a more tangible phase. The estate’s latest timetable suggests that distributions are no longer simply a legal framework on paper, but an active process moving toward broad repayment across multiple stakeholder groups.