FTX Payouts $900M: 105% Recovery Rates and Strict Eligibility Rules

Woofun AI reports that the FTX Recovery Trust has scheduled a $900 million distribution for eligible creditors on July 31, marking a significant milestone in the ongoing bankruptcy resolution process. This payout targets both Convenience and Non-Convenience Classes, contingent upon strict adherence to procedural deadlines established by the estate.

The announcement of this fifth distribution round elevates the total disclosed creditor repayments to over $10 billion, a figure accumulated since the initial payouts commenced in February 2025. This cumulative volume underscores the scale of the estate's recovery efforts and the substantial liquidity being returned to the market over the past several months.

Eligibility for the July 31 distribution is strictly bound by the June 16 record date, requiring creditors to have held an allowed claim and completed all mandatory verification steps by that deadline. Both Convenience and Non-Convenience Classes are included in this payout structure, provided they meet the criteria for an allowed claim as defined by the restructuring plan.

Funds will be disbursed through three primary channels: BitGo, Kraken, and Payoneer, with recipients expected to receive their allocations within one to three business days after the distribution begins. The choice of platform depends on the creditor’s classification and jurisdiction, ensuring a streamlined but segmented delivery mechanism for the $900 million pool.

The distribution percentages vary by claim class, with some creditors receiving up to 105% or 120% of their allowed claim value, though Class 7 creditors receive no new incremental percentage as they have already achieved full treatment. These figures are subject to minor adjustments due to rounding, and a detailed breakdown by class will be filed with the bankruptcy court following the July 31 payout.

Woofun AI data shows that, crucially, these percentages reflect the value of the allowed bankruptcy claim as of November 11, 2022, not the current market value of assets like Bitcoin or Ethereum. The U.S. dollar values were calculated using the Digital Asset Conversion Table approved during proceedings, meaning creditors are repaid based on historical court-recognized values rather than present-day asset prices.

While the distribution injects liquidity into the hands of former customers, it does not guarantee reinvestment in crypto markets, as payments are made in fiat via BitGo, Kraken, and Payoneer. Creditors may use the funds to pay taxes, settle unrelated debts, or withdraw cash, meaning the actual impact on digital asset demand remains uncertain despite the potential for new buying power.

Strict eligibility rules exclude those who failed to meet the June 16, 2026 record date requirements, though they may qualify for future rounds if they satisfy the conditions before forfeiture deadlines. Transferred claims face additional hurdles, requiring the new holder to appear on the official claims register and survive a 21-day transfer notice period without objection prior to the record date.

In a separate transaction, the Preferred Shareholder Remission Fund Trust will distribute approximately $18 million to eligible preferred equity holders on July 31, bringing the trust’s total payments to $95 million. This payment is distinct from the creditor pool, requiring recipients to complete KYC checks, submit ownership certification, and use BitGo for institutions or Payoneer for individuals.

Future distributions remain unannounced, dependent on remaining reserves, disputed claim resolutions, and additional recoveries. Creditors are urged to rely solely on the official FTX Customer Claims Portal and verify communications, as the estate warns that it will never request crypto wallet connections for bankruptcy payouts.