FTX Recovery Efforts
FTX Recovery Trust to Distribute $900 Million to Creditors by July 31
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Key Points
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In the July 31 distribution, per-class incremental recoveries are: 5A Dotcom Claims receive an additional 9%, bringing cumulative recovery to 105%; 5B US Claims receive 5%, also to 105%; General Unsecured Claims and Digital Asset Loan Claims receive 3% each, lifting their cumulative recoveries to 103%; Convenience Claims reach a 120% cumulative recovery.
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Payments will be routed through Kraken for individual creditors and BitGo for institutional recipients, with Payoneer also listed among the distribution providers.
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FTX also plans a special process for NFT holders as part of the July 31 distributions, signaling a broader scope for claims handling beyond standard cash payouts.
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To accelerate payouts, the estate seeks court approval to reduce disputed-claim reserves by about $600 million, lowering the reserve from $2.4 billion to roughly $1.8 billion.
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The U.S. Senate rejected clemency for Sam Bankman-Fried, while SBF continues to pursue a presidential pardon; President Trump has indicated he has no plans to pardon.
FTX's bankruptcy estate will send roughly $900 million to creditors on July 31, marking its fifth round of repayments since the exchange collapsed in 2022, according to CoinTelegraph. The payout covers eligible claims in the Convenience and Non-Convenience classes, with the record date set at June 16.
The new distribution pushes total creditor repayments past $10 billion since payments began in 2025, according to Coin Edition. That milestone signals how far the estate has come in unwinding one of crypto's biggest collapses.
How Much Each Creditor Class Will Recover
Not every creditor gets the same slice. According to CoinTelegraph, Convenience Claims hit a 120% cumulative recovery in this round — meaning creditors get back more than they originally lost. Dotcom Claims and US Claims both reach 105% cumulative recovery, adding 9% and 5% respectively in this distribution.
General Unsecured Claims and Digital Asset Loan Claims each receive an additional 3%, bringing both to 103% cumulative recovery, per TradingView. A separate $18 million payment goes to eligible preferred equity holders, lifting total PSRFT distributions to $95 million.
Kraken, BitGo, and Payoneer Handle the Payouts
Funds will flow through three providers. Individual creditors will receive payments via Kraken. Institutional recipients will get theirs through BitGo. Payoneer is also listed as a distribution partner, according to Eritv News.
The estate also plans a special process for NFT holders as part of the July 31 distributions, according to Coin Edition. That signals the bankruptcy team is handling a broader range of claims than standard cash payouts alone.
Estate Seeks to Free Up $600 Million in Reserves
To speed up future payments, the FTX estate is asking a court to cut its disputed-claim reserves by about $600 million, according to Crypto Economy. That would drop the reserve from roughly $2.4 billion to about $1.8 billion, freeing up cash for distribution sooner.
Disputed-claim reserves are funds set aside for creditors whose claims have not yet been approved. Cutting that pool requires court sign-off. If approved, the move would accelerate how quickly remaining creditors see their money.
SBF Pardon Push Hits a Wall in Washington
FTX founder Sam Bankman-Fried is still serving his 25-year prison sentence. He has sought a presidential pardon, but President Trump has said he has no plans to grant one, according to CoinTelegraph. The U.S. Senate also rejected a clemency push for Bankman-Fried.
The broader FTX case remains under court oversight, with hearings continuing as the estate works through remaining claims. The July 31 distribution is one of several steps still ahead before the bankruptcy is fully resolved.
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