Almost four years after the collapse of the platform, the process of repaying creditors continues to take new steps. FTX has confirmed the launch of a fifth wave of distributions, which is scheduled to begin at the end of the month. This new operation represents approximately $900 million and is part of the legal recovery procedure initiated after the 2022 bankruptcy. Since the start of repayments in 2025, cumulative payments are now approaching $10 billion in favor of creditors and other stakeholders.
In brief
- FTX will launch a fifth round of redemptions of around $900 million starting at the end of the month.
- Since the plan began in 2025, nearly $10 billion has already been redistributed to creditors and other stakeholders.
- Eligible creditors will receive their funds within three business days via BitGo, Kraken or Payoneer.
- Reimbursements concern the “Convenience” and “Non-Convenience” categories, which bring together small creditors as well as larger files.
FTX launches fifth distribution of $900 million
On Friday, crypto exchange FTX announced that it would begin distributing around $900 million to its creditors starting at the end of the month. This operation constitutes the fifth wave of reimbursements planned as part of the bankruptcy procedure carried out under Chapter 11. Last March, the platform had already paid 2.2 billion dollars to the beneficiaries concerned. Now, the total amount distributed since the program began in 2025 has reached nearly $10 billion.
As with the previous distribution, FTX Plans Fast Payment Processing for Eligible Creditors. Recipients in the Convenience and Non-Convenience categories should receive their funds within three business days. Payments will be made by BitGo, Kraken or Payoneer providers. This organization uses the same operation adopted during previous waves of reimbursement.
Creditors continue to receive their funds
The “Convenience” category mainly brings together individual traders as well as small creditors, who represent the majority of those affected by the FTX bankruptcy. Conversely, the “Non-Convenience” category concerns larger debts or those with a more complex structure. This distinction determines the processing of files within the framework of the reimbursement plan. Eligible beneficiaries therefore continue to receive their payments according to the planned terms.
Since the launch of the program, FTX sought to compensate retail creditors between 118% and 142% of the value of their holdings at the time of the platform’s collapse in 2022. However, some have criticized this approach, saying repayments should have been made in assets rather than monetary value.
Furthermore, in May, Fenwick & West, former main external advisor to FTX US, agreed to pay $54 million to settle charges related to its role before the bankruptcy and the fraud alleged against Sam Bankman-Fried.
With this fifth distribution, FTX continues the execution of its repayment schedule. The next steps will make it possible to measure the progress of the recovery plan and the continuation of payments intended for the different categories of creditors.
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