FTX Starts $900M Payout and Sets Strict Creditor Deadline

Crypto exchange FTX is rolling out its fifth major creditor distribution worth about $900 million. Eligible account holders should start seeing funds hit their accounts through platforms like BitGo, Kraken, or Payoneer within one to three business days. This round covers specific convenience and nonconvenience claims that met the June record date and passed initial compliance checks.

There is a catch for anyone who missed certain paperwork steps. Creditors who have allowed claims but still need to finish provider onboarding now face a strict six month countdown. If they fail to complete the required setup within this window, they risk losing their funds permanently. Tax forms also carry their own separate deadlines under the restructuring plan, making timely compliance essential.

Different creditor classes will see varied recovery rates in this batch. Class 5A dotcom customers and Class 5B US customers are moving toward a 105 percent cumulative payout. General unsecured claims and digital asset loans are tracking at 103 percent, while convenience claims reach 120 percent. Meanwhile, preferred equity holders are sharing an additional $18 million distribution through a separate fund.

Traders and creditors should watch for completion notices from distribution partners over the coming days. Anyone still caught in onboarding must act quickly before the six month clock runs out to secure their share of the recovered funds.