FTX sets July 31 for nearly $900 million in fifth creditor distribution

Repayment round and eligibility

According to the company, the July 31 distribution will cover creditors with approved claims in the Convenience and Non-Convenience Classes. To qualify, claimants needed to complete all required pre-distribution steps by the June 16 record date.

Payments are set to be sent through FTX’s approved distribution partners. Kraken, Payoneer and crypto custodian BitGo will handle transfers to eligible recipients. FTX did not provide a class-by-class breakdown of the nearly $900 million total, but described the payment as the fifth distribution since the repayment process began.

The company also said additional record dates and future payment dates will be announced later.

Preferred equity payment also scheduled

On the same day, FTX plans to make a second distribution to eligible Preferred Equity Holders. Eligibility for that payment was also based on the June 16 record date.

The funds will come from the Preferred Shareholder Remission Fund Trust, which is set to distribute $18 million in this round. With that payment, total distributions from the trust will reach $95 million. Individual shareholders are due to receive funds through Kraken, while institutional recipients will be paid through BitGo.

FTX said it began reaching out to eligible Preferred Equity Holders in January to help them complete the required requirements ahead of distribution.

Bankruptcy process remains active

The latest repayment round is part of the broader unwind of FTX following its 2022 bankruptcy filing. The exchange entered Chapter 11 after a liquidity crisis revealed a multibillion-dollar shortfall.

Under the court-approved reorganization plan, distributions depend on several conditions, including claim approval, eligibility as of the relevant record date and completion of verification requirements. The case is still moving through bankruptcy court, with omnibus hearings scheduled for July 23 and Aug. 16.

Clemency push loses momentum

The repayment update arrived alongside renewed attention on Sam Bankman-Fried, who remains in prison after receiving a 25-year sentence for fraud and conspiracy. Efforts to secure clemency for the former FTX chief are facing political resistance, according to the report.

The U.S. Senate recently rejected a clemency effort, while President Donald Trump has indicated he does not plan to pardon Bankman-Fried. That has dimmed the chances of an early release through presidential action. At the same time, criminal proceedings connected to the FTX collapse are still ongoing, including trials tied to campaign finance charges.

The July 31 distributions underscore that FTX’s bankruptcy estate is still focused on processing approved claims and returning funds through its court-supervised plan, even as the legal and political fallout from the exchange’s collapse continues.