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FTX to Distribute $900M to Creditors on July 31

Created at 17 Jul · 7:00 PM1 source↑ Market-relevant
IN SHORT

Defunct crypto exchange FTX announced it will distribute nearly $900 million to creditors on July 31 as part of its Chapter 11 Plan of Reorganization. This marks the fifth distribution, with eligible creditors receiving funds through Kraken, Payoneer, or BitGo.

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Key Numbers

$900 millionFTX creditor distribution amount
July 31FTX distribution date
June 16Record Date for eligibility
$18 millionSecond Preferred Payment amount
$95 millionTotal PSRFT payments

Who's Involved

FTX
Defunct crypto exchange making creditor distributions
Sam Bankman-Fried
Founder of FTX, seeking pardon
Kraken
Distribution service provider for creditors
Payoneer
Distribution service provider for creditors
BitGo
Custody provider and distribution service for shareholders

↳ Why This Matters

This significant distribution from FTX offers a partial recovery for creditors of the collapsed exchange, signaling progress in the complex bankruptcy process and potentially impacting market sentiment for digital assets.

Key facts

  • FTX will distribute approximately $900 million to creditors on July 31.
  • This is the fifth distribution under the exchange's Chapter 11 Plan of Reorganization.
  • Creditors can receive funds through Kraken, Payoneer, or BitGo.
  • A second payment of $18 million will be made to eligible Preferred Equity Holders on July 31.
  • The Preferred Shareholder Remission Fund Trust (PSRFT) has paid $95 million in total.

Defunct cryptocurrency exchange FTX is preparing to distribute nearly $900 million to its creditors on July 31, marking its fifth round of repayments under its Chapter 11 Plan of Reorganization. Eligible creditors who met pre-distribution requirements by June 16 can receive their funds through selected service providers, including Kraken, Payoneer, and BitGo.

In addition to the general creditor distribution, FTX will also issue a second payment to eligible Preferred Equity Holders on the same date. This payment, totaling $18 million, will bring the total disbursed from the Preferred Shareholder Remission Fund Trust (PSRFT) to $95 million. These payments will be facilitated through Kraken for individual shareholders and BitGo for institutional ones.

The bankruptcy proceedings continue, with omnibus hearings scheduled for July 23 and August 16. Meanwhile, FTX founder Sam Bankman-Fried remains in legal proceedings, with the U.S. Senate having rejected a clemency request for him, and President Trump indicating no plans for a pardon.

Frequently asked questions

FTX is scheduled to make its fifth distribution to creditors on July 31.

The exchange plans to distribute approximately $900 million to creditors.

Eligible creditors can receive their funds through distribution service providers such as Kraken, Payoneer, or BitGo.

Yes, FTX will make a second payment to eligible Preferred Equity Holders on July 31, totaling $18 million.

What Happens Next

01FTX to announce subsequent record and payment dates.
02Omnibus Hearing scheduled for July 23.
03Another Omnibus Hearing scheduled for August 16.

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Cadence

How It Developed

FTX will distribute nearly $900 million to creditors on July 31.
This marks the fifth distribution from the defunct exchange.
Eligible creditors will receive funds via Kraken, Payoneer, or BitGo.
FTX will also make a second payment to eligible Preferred Equity Holders on July 31.
The second Preferred Payment will total $18 million, bringing PSRFT payments to $95 million.

Sources

T1
FTX to Distribute $900M to Creditors on July 31CoinGape

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