FTX will distribute approximately $900 million to creditors in its fifth wave of payouts, with distributions beginning on July 31, according to The Block. The move represents a continuation of the failed exchange's bankruptcy reorganization process, which has progressively returned customer and creditor funds following the firm's November 2022 collapse.
The latest distribution marks a significant milestone in FTX's creditor recovery plan, as the exchange's bankruptcy estate has steadily liquidated assets to satisfy claims. Previous waves of payouts have already returned a substantial portion of funds to affected parties, with the bankruptcy trustee prioritizing timely distributions to reduce the outstanding claim backlog.
The $900 million payout underscores the substantial asset base FTX retained despite its dramatic implosion, which saw founder Sam Bankman-Fried convicted of fraud and money laundering. Creditors have recovered material portions of their claims ahead of the initially projected timeline, demonstrating the effectiveness of the liquidation strategy under court supervision.