The bankrupt cryptocurrency exchange FTX is preparing another major round of repayments, bringing the total value of creditor compensation above $10 billion as the bankruptcy recovery process continues.
Summary:
FTX will begin its fifth creditor payout on July 31, distributing approximately $900 million
Total repayments since the compensation program began will exceed $10 billion
Creditors are compensated using asset values from the exchange's bankruptcy date rather than current crypto prices
The fifth distribution is scheduled to start on July 31, with around $900 million allocated to creditors who completed the required verification procedures by June 16. According to creditor representative Sunil Kavuri, both retail and institutional claimants will participate in this round. Smaller claims are expected to receive a recovery rate of about 120%, while larger claims are projected to recover roughly 105% of their approved value.
FTX's restructuring plan, approved by a U.S. court in October 2024, estimates total allowed claims at approximately $16–17 billion. However, repayments are calculated using cryptocurrency prices recorded when the exchange entered bankruptcy proceedings rather than current market values.
That valuation method remains one of the most disputed aspects of the process. Although many creditors are receiving more than their original dollar-denominated balances, some argue that they have effectively recovered far less after accounting for the sharp appreciation of digital assets since FTX collapsed. Kavuri has previously estimated the real economic recovery at only 9% to 46% when measured against today's crypto prices.
The latest distribution follows four previous payment rounds that collectively returned more than $9 billion to former customers. The first round primarily covered claims below $50,000, while later distributions expanded eligibility to a broader group of creditors.
Eligible claimants must complete identity verification and confirm their account balances before funds can be released under the court-approved compensation program.
Previously, we covered developments in the FTX criminal case. Former Alameda Research CEO Caroline Ellison has now been released from federal custody.