FTX Begins Its Fourth Distribution on March 31: $2.2 Billion Goes Out and Several Creditor Classes Hit Full Recovery

The FTX Recovery Trust has announced its fourth round of creditor distributions will begin on March 31, 2026, releasing approximately $2.2 billion and pushing multiple claim classes to 100% recovery or above as total repayments approach $10 billion.

What This Distribution Covers

According to official press release, payments are expected to reach accounts within one to three business days of the March 31 start date. Funds will be delivered through BitGo, Kraken, or Payoneer depending on which distribution partner the claimant selected during onboarding. Claimants who did not complete KYC and AML verification, submit required tax forms, or register with a distribution partner by the February 14, 2026 record date are not eligible for this round.

The recovery rates attached to this distribution are the most significant aspect of the announcement. Class 5B, covering U.S. customers, reaches 100% cumulative recovery with this payment. Classes 6A and 6B, covering general unsecured creditors and digital asset loan claims, also reach 100%. Class 7 convenience claims reach 120% cumulative recovery, meaning those creditors receive more than their original claim value. Class 5A, covering Dotcom customers, reaches approximately 96% cumulative recovery, leaving a small remaining balance for a future distribution.

After this round closes, the total amount returned to FTX creditors and customers will reach approximately $10 billion.

What Full Recovery Actually Means Here

The 100% recovery figures require context. FTX creditors are being repaid at the dollar value of their claims at the time of the November 2022 bankruptcy filing, not at current crypto market prices. Bitcoin was trading near $16,000 at the time of the collapse. It trades near $70,000 today.

A creditor who held Bitcoin on FTX and receives 100% dollar recovery has been made whole on their nominal claim. They have not been compensated for the appreciation they would have captured had the exchange not failed. That distinction has been a source of ongoing debate among creditors throughout the bankruptcy process. The recovery trust is operating within the legal framework of the bankruptcy settlement, which uses dollar-denominated claim values. The gap between that framework and current market prices is not a recovery trust decision.

The Road to $10 Billion

Three prior distribution rounds preceded this one. The cumulative total reaching $10 billion after this payment reflects a recovery process that has moved faster than most bankruptcy proceedings of comparable scale. The estate has benefited from asset sales, litigation recoveries, and the appreciation of certain holdings that were liquidated above bankruptcy-era valuations.

A separate distribution for preferred equity interest holders is scheduled for May 29, 2026, with a record date of April 30. That distribution covers a different creditor class and follows its own eligibility timeline.

The Phishing Warning

The FTX Recovery Trust has issued a specific advisory alongside the distribution announcement. The trust will never ask claimants to connect a crypto wallet to receive funds. Any communication requesting wallet connection in connection with FTX distributions is fraudulent. All legitimate actions are completed through the authorized FTX Customer Portal exclusively.

Given the scale of the distribution and the public nature of the announcement, phishing attempts targeting claimants in the days surrounding March 31 are a credible risk. The trust’s advisory is worth taking seriously.

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