The FTX bankruptcy estate has announced its fifth round of creditor distributions, with approximately $900 million set to be paid out on July 31, 2026. This latest payout brings total distributions since the exchange collapsed in November 2022 to roughly $10 billion.
Under the terms of the fifth distribution, certain creditor classes will receive cumulative recoveries exceeding their original claims. Dotcom and United States customer claims will reach 105%, while general unsecured and digital asset loan claims will receive 103%. Convenience Class claimants will recover 120% of their claim value.
The FTX Recovery Trust has been steadily processing claims and releasing funds to creditors as it liquidates assets held by the former exchange. The process has been closely watched by the crypto industry as one of the largest bankruptcy proceedings involving a digital asset platform.
The ongoing distributions mark a significant milestone in resolving what was one of the most consequential failures in cryptocurrency history, when FTX filed for Chapter 11 bankruptcy protection in November 2022 following a liquidity crisis.
This article was adapted from Cointelegraph. Read the original here.
