FTX to Distribute $2.2B to Creditors in March

The FTX Recovery Trust has officially announced plans to distribute approximately $2.2 billion to eligible creditors starting March 31, 2026.

“Further distribution timelines are expected to be announced, the statement concluded”

@coindesk

This marks the fourth major distribution under the exchange's Chapter 11 reorganization plan following its collapse in November 2022.

@coindesk

Eligible creditors should expect funds within one to three business days after the start date.

Funds will be processed through BitGo, Kraken, or Payoneer based on each creditor's selection during onboarding.

The distribution applies to holders of allowed claims in both Convenience and Non-Convenience classes who have completed pre-distribution requirements.

Creditors must complete KYC verification and submit tax documentation through the official FTX claims portal.

Those who onboarded with specific providers have irrevocably directed FTX to pay through those channels.

This effectively waives direct payment rights in favor of intermediary processing.

The payout represents significant progress in one of the largest crypto restructurings in history.

The upcoming distribution will complete full recovery for several creditor classes while bringing others close to complete repayment.

U.S. customer entitlement claims (Class 5B) will receive a final 5% distribution, reaching 100% cumulative recovery.

AMBCrypto

General Unsecured Claims (Class 6A) will receive 15%, reaching 100% total recovery.

Digital Asset Loan Claims (Class 6B) will also receive 15%, reaching 100% total recovery.

Dotcom Customer Entitlement Claims (Class 5A) will receive an 18% incremental payout, bringing their cumulative total to 96%.

Full repayment for the Dotcom class remains outstanding.

Convenience class claimants will reach a cumulative 120% distribution.

This exceeds their original claim values due to asset appreciation during recovery.

Reductions in disputed claims reserves from $4.6B to $2.4B enabled higher payouts.

All payments are made in USD based on November 2022 claim values.

At the time of bankruptcy filing, Bitcoin was trading at about $16,871 and Ether at about $1,258.

These values are significantly lower than current crypto market prices.

The $2.2 billion distribution builds upon a structured repayment schedule that began in early 2025.

“FTX will start its fourth major creditor payout on March 31, sending about $2”

BanklessTimes

This reflects the systematic approach taken by the FTX Recovery Estate.

The first round in February 2025 distributed approximately $1.2 billion to smaller claimants.

Particularly those in the Convenience Class with claims under $50,000.

This covered 100% of their claims plus 9% interest.

The second round in May 2025 totaled $5 billion.

This was the first major payout for larger and institutional claims.

Payments ranged from 54% to 72% for these larger claims.

The third round in September 2025 distributed about $1.6 billion.

After the March 31 distribution, total payments will approach $10 billion.

The fifth distribution is scheduled for May 29, 2026.

The FTX Recovery Estate has recovered between $14-16 billion total.

Some creditors criticize the valuation methodology based on 2022 market conditions.

They argue they are not being made whole despite crypto price increases since then.

The distribution of recovered funds is expected to have significant market implications.

Creditors and former customers may choose to reinvest the recovery funds into crypto markets.

Blockonomi

This influx of approximately $2.2 billion could provide fresh liquidity to the crypto sector.

It may influence trading activity and asset prices in the near term.

The repayments push multiple creditor classes toward full or near-full recovery levels.

This may encourage some recipients to purchase digital assets.

This could potentially increase demand for major tokens like Bitcoin and Ethereum.

However, market impact is tempered by the valuation methodology.

Payments are based on 2022 petition-date values, not current crypto prices.

Creditors who held assets that have appreciated significantly may feel undercompensated.

They receive their full claimed amount but miss out on appreciation.

This valuation discrepancy has been a point of contention among creditors.

Some advocates argue FTX creditors are not being made whole.

The recovery plan methodology has faced criticism for this reason.

In addition to creditor distributions, FTX has outlined a separate timeline for preferred equity holders.

“Total repayments will reach nearly $10B after this distribution cycle”

CoinCentral

The record date is set for April 30, 2026.

CoinCentral

Initial payments are scheduled for May 29, 2026.

These payments will be funded through the Preferred Shareholder Remission Fund Trust (PSRT).

Eligible holders must complete all required steps by the record date.

Requirements include ownership certification, KYC verification, and tax forms.

Outreach to Preferred Equity Holders began in January 2026.

Those who qualify but haven't been contacted can visit the designated FTX link.

The distribution process occurs amid ongoing legal proceedings involving Sam Bankman-Fried.

Bankman-Fried is serving a 25-year prison sentence.

He has been pursuing appeals in his criminal case.

He was recently transferred from FCI Terminal Island to FCI Lompoc I.

His release date is August 2044.

His mother claims he will be relocated "sometime in the next few weeks."

This adds complexity to the ongoing FTX saga.