FTX Sets $2.2B Distribution as Creditor Recoveries Reach up to 120%

FTX is set to begin a $2.2 billion creditor payout on March 31 while separately scheduling its first preferred equity payments for May 29, as multiple claim classes move toward full or even excess repayment under the restructuring plan.

Eligible participants in both convenience and non-convenience classes must complete pre-distribution requirements to receive funds through Bitgo, Kraken, or Payoneer. The announcement states:

“Eligible creditors should expect to receive funds from their selected distribution service provider within 1 to 3 business days from March 31, 2026.”

Allocation levels differ across claim categories based on priorities established in the Chapter 11 plan, with each class representing a distinct type of creditor claim. Class 5A covers dotcom customer entitlement claims tied to international platform users and will receive an incremental 18%, bringing cumulative recovery to 96%, while Class 5B includes U.S. customer entitlement claims, which will receive 5% to reach full repayment.

Classes 6A and 6B relate to non-customer obligations, including general unsecured claims and digital asset loan claims, and will each receive 15%, resulting in 100% cumulative recovery. Class 7 applies to smaller convenience claims, which are set to exceed full repayment with a cumulative recovery of 120%.

Eligibility conditions continue to govern participation in distributions, including Know Your Customer verification, submission of tax forms, and onboarding through the FTX Customer Portal with a designated provider. Customers must select a single distribution service provider, and that choice cannot be changed once onboarding is completed.

Separately, April 30, 2026, has been set as the record date for the first payments to preferred equity holders, which are scheduled to be made on May 29, 2026. These payments will be issued through the Preferred Shareholder Remission Fund Trust to holders who complete ownership certification, verification requirements, and tax submissions. The announcement notes:

“Payments will be made to holders who will have provided all required information, successfully verified their eligibility and be registered as holders of record on the FTX docket as of the April 30, 2026 record date.”