FTX distribution update as Recovery Trust prepares $2.2 billion payout to creditors

Creditors of the failed crypto exchange are set to receive a new FTX distribution as the court-appointed trust accelerates its recovery and repayment schedule.

Fourth payout of $2.2 billion scheduled for March 31

The FTX Recovery Trust will distribute about $2.2 billion to creditors on March 31 in what it describes as the fourth payout under the exchange‘s Chapter 11 plan. According to the trust, eligible creditors in both “Convenience” and “Non-Convenience” classes will receive this latest round of payments.

Funds are expected to arrive within 1 to 3 business days via BitGo, Kraken, or Payoneer, depending on the distribution provider chosen during onboarding. However, customers who selected a designated provider have waived the right to direct cash payments from the estate and must work with those platforms to access their funds.

The trust emphasized that all distributions are made in U.S. dollars to the chosen service providers. Those intermediaries then give users the option to withdraw in fiat or convert into digital assets, offering multiple fiat withdrawal conversion options for different jurisdictions.

Impact on creditor recovery rates and claim classes

The new payout significantly improves claim class recovery rates across several groups of creditors, the trust said in its latest statement. Moreover, the update confirms that many former users of the collapsed exchange are now close to, or at, full recovery of their allowed claims.

For this fourth distribution, creditors in Class 5A Dotcom are set to receive an additional 18%, bringing their total recovery to 96%. U.S. customer claims categorized as Class 5B are expected to reach full recovery at 100%. That said, the trust noted that customers in Classes 6A and 6B will also achieve 100% recovery, each receiving a further 15% increment in this round.

In a notable development for subordinated claimants, Class 7 is projected to receive a cumulative 120% distribution once this payout is completed. This means those claims will ultimately recover more than the face value of their approved amounts, reflecting the estate’s asset realization strategy.

Previous distributions and progress of the bankruptcy estate

The upcoming FTX distribution follows a third major payout that began on September 30, when the trust released approximately $1.6 billion to creditors. That round added to earlier distributions that, in total, have exceeded $6 billion since the exchange’s collapse.

These repayments form part of a multi-year effort to recover and monetize assets from the once-prominent cryptocurrency platform, which failed in November 2022. The estate has pursued a broad asset recovery campaign across digital holdings, venture investments, and other property linked to the former group of companies.

Meanwhile, former FTX chief executive Sam Bankman-Fried remains in prison, serving a 25-year sentence after being found guilty on seven counts of fraud and conspiracy. However, the trust’s ongoing work operates independently of his criminal case, under the supervision of the U.S. bankruptcy court.

Onboarding, KYC and distribution mechanics

To receive payments, creditors must complete all required onboarding steps with their chosen providers, including ownership verification, know-your-customer (KYC) checks and submission of tax forms where applicable. Moreover, the trust has stressed that incomplete documentation may delay individual payouts even if the overall distribution date remains unchanged.

Under the FTX creditor payout process, the estate sends U.S. dollar amounts to BitGo, Kraken or Payoneer, based on each creditor’s election. Those platforms then credit user accounts, from which funds can be withdrawn, kept in cash, or converted into supported digital assets. The FTX recovery trust distribution framework is designed to handle thousands of individual claims while maintaining regulatory compliance.

While some customers have compared BitGo vs Kraken for FTX distribution, the trust has not endorsed any single platform. Instead, it has focused messaging on timely onboarding and accurate information to avoid processing issues during each distribution round.

Preferred equity holders: key dates and requirements

Beyond creditor claims, the estate has also scheduled initial payments to preferred equity holders. The record date for this first tranche is April 30, with actual payments planned for May 29, according to the trust’s latest update on March 18, 2026.

To qualify, eligible holders must complete ownership certification, KYC verification and relevant tax documentation, similar to the process required for creditors. However, equity holders represent a distinct class of stakeholders, and their recovery is being addressed separately from standard customer claims.

The trust began outreach to equity holders earlier this year and has urged anyone who believes they qualify, but has not been contacted, to come forward. That said, further details on the exact recovery percentages for each equity class are expected in future updates.

Timeline for future payouts and next steps

While the current payout focuses on the March 31 transfer, stakeholders are also watching for announcements on the FTX next distribution and any remaining recovery beyond already-planned rounds. The estate has indicated that additional timelines will be communicated as asset sales and settlements progress.

For now, the fourth distribution represents a major milestone in the broader FTX bankruptcy recovery update, especially as multiple customer classes reach full or even surplus repayment. Moreover, the combination of creditor and equity distributions suggests the estate has made substantial headway in converting illiquid holdings into cash.

In summary, the latest $2.2 billion payout, improved recovery levels across key classes, and clear preferred equity payment requirements underscore the advanced stage of the restructuring. Creditors and investors will now look to subsequent notices for clarity on any remaining recoveries and the final winding down of the estate.