FTX Announces Fifth Creditor Payout Round

The FTX bankruptcy estate has confirmed it will initiate its fifth distribution round on July 31, 2024, with approximately $900 million set to be allocated to eligible creditors.

Distribution Details and Process

This round covers both convenience and non-convenience class claimants under the approved reorganization plan. Qualified creditors can expect the following:

  • Payment Channels: Funds will be disbursed via BitGo, Kraken, or Payoneer accounts
  • Processing Time
  • Repayment Rates: Claims under $50,000 will receive 120% repayment, while other claims will get between 103% and 105%

Bankruptcy Proceedings Update

Since FTX filed for Chapter 11 bankruptcy in November 2022, the recovery trust has distributed roughly $10 billion to creditors through previous rounds. The upcoming $900 million payout continues this structured repayment process.

In related legal developments, former CEO Sam Bankman-Fried's 25-year prison sentence was upheld last month after his appeal was dismissed by the court.