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July 31 Creditor Payout
FTX will begin its fifth creditor distribution on July 31, distributing about $900 million to eligible claimants under its Chapter 11 reorganization plan.
The FTX Recovery Trust said creditors can receive funds through BitGo, Kraken or Payoneer accounts within one to three business days starting from July 31.
Bloomingbit reported that convenience claims below $50,000 will receive 120% of principal, while larger claims will be paid at 103% to 105%.
The same reporting tied the payout timeline to the ongoing criminal case against former FTX CEO Sam Bankman-Fried, who is serving a 25-year prison sentence after being convicted in 2024 of misusing customer funds.
Bloomingbit also said Bankman-Fried sought a pardon from U.S. President Donald Trump, whose January interview said he had no intention of granting one.
Record Date and Rates
FTX said the July 31 distribution will cover holders of allowed claims in the recovery plan’s “convenience and non-convenience classes,” and that creditors must have completed required pre-distribution steps by the June 16 record date.
TradingView described the eligible distribution providers as BitGo, Kraken or Payoneer and said the distribution would start on July 31 in a Friday notice.
AMBCrypto reported that under the latest distribution, allowed Class5A Dotcom Customer Entitlement Claims will receive an additional 9%, taking cumulative distributions to 105%, while GeneralUnsecured Claims and Digital Asset Loan Claims will each receive 3%, bringing cumulative distributions to 103%.
AMBCrypto also said Convenience Claims will have received cumulative distributions of 120% and that the July 31 distribution will coincide with another payment to eligible FTX preferred equity holders.
The same AMBCrypto account added that the Preferred Shareholder Remission Fund Trust will distribute $18 million to eligible holders who met the requirements by the June 16 record date, bringing total distributions from the fund to $95 million.
Pardon Hopes Fade
As FTX prepares the July 31 payouts, the sources describe political resistance to former FTX CEO Sam Bankman-Fried’s clemency effort, with the U.S. Senate adopting a resolution opposing a pardon.
“FTX will distribute approximately$900 millionto eligible creditors onJuly 31, marking the bankrupt crypto exchange’s fifth distribution under itsChapter 11reorganization plan”
Bloomingbit said the U.S. Senate unanimously adopted a resolution this week opposing a pardon, and that Trump had said in a January interview he had no intention of granting one.
TradingView added that the measure can’t stop Trump from issuing a pardon but reflected bipartisan opposition to granting clemency to a convicted felon.
The sources also placed the repayment process alongside other legal fallout from the exchange’s collapse, including that Fenwick & West agreed to pay $54 million to settle a class action lawsuit filed by former users.
Cointelegraph’s account said former FTX executives including CEO Sam “SBF” Bankman-Fried and Ryan Salame, the co-CEO of FTX’s Bahamian affiliate, are still in federal prison as part of their role in the exchange’s misuse of customer funds.
