The FTX bankruptcy estate has completed its fifth distribution of approximately $900 million, paid out on July 31, 2026. This represents the largest single distribution since the program began in February 2025, bringing the total recovery to more than $9.7 billion since the exchange's collapse in November 2022. Only creditors who completed all three required steps before the June 16, 2026 record date received the July payment. The funds were disbursed through the three approved distribution service providers: BitGo, Kraken, and Payoneer, with eligible creditors receiving funds within 1 to 3 business days from their chosen provider.
A single customer dispute remains active on the FTX bankruptcy docket as the estate approaches closure. According to reports from CoinDesk, claimant Daizhuo Chen filed a motion on March 27 seeking to reopen his verification deadline that he missed. Chen is requesting Chief Judge Karen B. Owens to undo her refusal to allow him to complete his checks late, citing Federal Rules of Civil Procedure 59(e) and 60(b)(2). The FTX Recovery Trust objected again on July 16, maintaining its position against similar requests.
The case centers on strict verification deadlines that FTX established for customers. As reported by CoinDesk, FTX told customers to begin verification by March 1, 2025, and to finish by June 1, 2025, with both deadlines closing at 4 p.m. ET. The verification process requires customers to complete know your customer (KYC) checks, file tax forms, and onboard with BitGo, Kraken or Payoneer. The FTX Recovery Trust has stated that hundreds of thousands of customer claims were already thrown out for failing these verification checks.
The estate has made significant progress in processing verified claims through multiple distributions. According to CoinDesk, the fourth round of repayments on March 31 sent out approximately $2.2 billion, while roughly $900 million followed on July 31 in the fifth distribution. Creditors who completed the paperwork have recovered their full claims, with several classes receiving additional recovery percentages: convenience claims at 120% recovered, U.S. customer claims at 100%, general unsecured claims at 100%, and dotcom customer claims at 96%. The Trust has requested to reduce the reserve for contested claims by $600 million, from $2.4 billion to $1.8 billion.
The sixth distribution is expected around January 2027, with creditors having until approximately January 31, 2027 before forfeiture risk applies. Missing the June 16 record date means creditors will not receive the July 31 payment, but their claims are not immediately forfeited. Creditors from previously restricted regions still face practical hurdles with the three approved providers, and FTX recently announced that creditors in certain jurisdictions may lose their claims within six months if they don't complete onboarding. The outcome of Chen's case will determine how much room remains for late filers seeking to recover their funds.
