FTX Starts Fifth Payout Round As Bankruptcy Nears The Finish Line

FTX has started its fifth creditor distribution, sending roughly $900 million to holders of allowed claims. This round is noticeably smaller than previous payouts, signaling that the lengthy bankruptcy process is finally entering its final phase. Past rounds included billions of dollars, but the shrinking totals show that most of the estate funds have already been returned.

Even as payouts continue, some creditors still cannot collect their funds. Disputed claims, pending tax forms, and ongoing reviews in certain legal jurisdictions are keeping some accounts frozen. In addition, creditors living in specific regions flagged by liquidators remain excluded while the legal team checks local rules.

For those who are approved, time is running out to claim the money. Creditors must finish setting up accounts with designated platforms like Kraken or BitGo within six months, or they risk losing their payments completely.

Traders should watch for final court filings detailing the exact class distributions and keep an eye on how these funds re enter the broader crypto market. While many accounts are finally seeing cash returns, the ongoing delays for remaining creditors highlight the complicated nature of large exchange liquidations.