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 approximately $900 million to its creditors on July 31, marking its fifth round of repayments under its Chapter 11 Plan of Reorganization. Eligible creditors can receive funds through distribution service providers including BitGo, Kraken, and Payoneer. Convenience claims under $50,000 will receive a 120% reimbursement, while others will receive between 103-105%.
In addition to the general creditor distribution, FTX will also issue a second payment to eligible Preferred Equity Holders on the same date, totaling $18 million. This brings the total disbursed from the Preferred Shareholder Remission Fund Trust (PSRFT) to $95 million.
Since filing for bankruptcy in November 2022, FTX has distributed about $10 billion to creditors. Former executives, including founder Sam Bankman-Fried, are serving prison sentences for their roles in the misuse of customer funds. The U.S. Senate recently adopted a resolution opposing clemency for Bankman-Fried, despite his application for a presidential pardon.