FTX’s $900M payout drops Friday, triggering 6-month countdown for creditors to onboard or forfeit funds entirely
FTX will start a roughly $900 million fifth Chapter 11 distribution on July 31, with eligible Convenience and Non-Convenience claim holders expected to receive funds through BitGo, Kraken, or Payoneer within one to three business days. Eligibility depends on both claim allowance and meeting June 16 pre-distribution requirements, including KYC, a valid tax form, successful provider onboarding, and sanctions screening. Missing any required step means no July 31 payment; incomplete onboarding also triggers a six-month window before rights may be lost, and tax-form deadlines are governed separately by the plan. Planned fifth-round payouts include 9% for Class 5A, 5% for Class 5B, and 3% each for Classes 6A and 6B, with Class 7 Convenience Claims at 120% cumulative recovery. Separate July 31 processes include an $18 million preferred-shareholder payment and a Bahamas distribution process with rates to be confirmed later.
