FTX to distribute $2.2 billion to creditors starting March 31

FTX, the now-defunct crypto exchange, will begin its fourth round of creditor repayments on March 31, with approximately $2.2 billion set to be distributed to eligible claimants, according to a Wednesday announcement from the FTX Recovery Trust, which handles recovered assets and payments to creditors.

Distribution partners, including BitGo, Kraken, and Payoneer, will handle the payments, which eligible claim holders should receive within one to three business days.

In addition, the company has set April 30 as the cutoff date for preferred equity holders to qualify for their first payments, which are scheduled for May 29.

The distribution schedule brings several creditor classes closer to full recovery.

Under the planned payout, US customer entitlement claims will receive a 5% distribution, completing their 100% cumulative payout. International customers holding Dotcom customer entitlement claims will receive an incremental 18% distribution, raising their cumulative recovery to 96%.

General unsecured claims and digital asset loan claims will each receive 15% distributions, also reaching 100% cumulative payouts. Convenience class claimants will receive a cumulative 120% distribution.

Creditors must complete onboarding, identity checks, and tax requirements to receive future payouts, while preferred equity holders must also confirm ownership and meet all requirements by the record date to be eligible.

Under the court-approved reorganization plan, FTX has returned billions of dollars to creditors, with payouts based on the dollar value of assets at the time of the November 2022 bankruptcy filing.

The distribution process began in February 2025 with the first round, which paid about $1.2 billion to Convenience Class claimants with claims under $50,000, covering 100% of their claims plus 9% interest.

The second round in May 2025 was the first major payout for larger and institutional claims, with payments ranging from 54% to 72%. The third round began last September, allocating around $1.6 billion to creditors.

The $2.2 billion distribution is expected to provide a major influx of funds to creditors, which could affect trading activity and asset prices in the crypto market. Those receiving payouts may use part of the funds to buy digital assets, potentially increasing demand for major tokens.