#United States #Wilmington #FTX Recovery Trust #Chapter 11 Plan #Creditors Distribution

FTX Announces Fifth Distribution to Creditors

On July 17, 2026, FTX Trading Ltd., operating as FTX.com, and the FTX Recovery Trust shared news about a major step in their Bankruptcy Plan. This involved the announcement of a fifth distribution amounting to approximately $900 million slated for July 31, 2026. This move aligns with the ongoing Chapter 11 Plan of Reorganization.

FTX's announcement primarily targets holders of allowed claims classified under the Plan’s Convenience and Non-Convenience Classes. To qualify for this fifth distribution, these creditors must have fulfilled the necessary pre-distribution conditions by the specified Record Date—June 16, 2026.

Eligible creditors can expect the disbursement through their chosen Distribution Service Provider—options include BitGo, Kraken, or Payoneer—within one to three business days post-distribution, set to commence on July 31, 2026. The exact timing of subsequent record and payment dates will be communicated as decided.

The distribution will unfold under specific waterfall priorities as detailed in the Plan:

• - Class 5A Dotcom Customer Entitlement Claims will witness a 9% distribution, bringing the cumulative distribution to 105% to date.
• - Class 5B U.S. Customer Entitlement Claims will see a 5% distribution, also totaling 105% cumulatively.
• - Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims are scheduled for a 3% distribution, leading to an overall total of 103%.
• - Class 7 Convenience Claims will have an impressive cumulative distribution of 120%.

Customers interested in receiving their distributions need to understand that upon onboarding with a Distribution Service Provider, they agree to forfeit their right to receive cash distributions directly from FTX, designating these funds to be paid directly to their provider instead. Should they have inquiries regarding their account funds, they’re encouraged to reach out to the selected Distribution Service Provider’s customer support.

For any upcoming distributions, creditors—including customers— must finalize several prerequisites:
1. Access the FTX Customer Portal: Users should log into the FTX Customer Portal.
2. Complete KYC Verification: It is essential to fulfill necessary Know Your Customer (KYC) requirements.
3. Tax Forms Submission: Submission of requisite tax forms is mandatory.
4. Onboarding with Distribution Services: Onboarding with either BitGo, Kraken, or Payoneer is a critical step, and detailed guidance for this is provided on the FTX Customer Portal.

For claims that have been transferred, distributions will be allocated solely to the transferee holder of an allowed claim processed and reflected on the official claims register maintained by the Notice and Claims Agent, applicable as of later record dates where the required notice period of 21 days has passed without any objection.

Preferred Equity Holder Payments

In adherence to both the Preferred Shareholder Agreement and the overall Plan, a noteworthy Second Payment is to be disbursed to eligible Preferred Equity Holders, also on July 31, 2026. This payment arises from the Preferred Shareholder Remission Fund Trust (PSRFT). The payment will total an estimated $18 million, resulting in cumulative payouts from the PSRFT reaching approximately $95 million for the fiscal year. Communications regarding these payments to Preferred Equity Holders began back in January 2026. Those who feel entitled to future payments tied to Preferred Equity Interests yet haven’t been communicated with should promptly consult appropriate channels for updates.

Phishing Advisory

Moreover, FTX issued a strong warning about phishing risks and scam emails that may impersonate FTX, reminding clients that FTX will never prompt them to connect their wallets through unsolicited communications or requests.

Conclusion

Additional filings from the U.S. Bankruptcy Court, inclusive of the Plan and related documents documenting the Court procedures, can be accessed via the Kroll managing website. FTX Digital Markets Ltd., the other branch of FTX, is expected to relay distribution details for customers choosing to have their claims managed through them. FTX is legally supported by Sullivan & Cromwell LLP, with Alvarez & Marsal North America LLC as financial advisors, highlighting the importance of comprehensive advisory practices in current Chapter 11 proceedings.