FTX Sets March 31 Date for $2.2B Creditor Distribution

Key Insights

• FTX will distribute $2.2 billion to creditors by March 31st, 2026, in its fourth distribution.
• Both retail and institutional creditors will get repayments from this distribution, which covers about five classes of creditors.
• SBF continues to claim that FTX was solvent and liquid despite contrary evidence as he seeks to appeal his conviction.

Bankrupt crypto exchange FTX has announced that its fourth distribution to creditors will take place by the end of March.

In an announcement, the failed firm said $2.2 billion would be distributed on 31st March. Also, the funds could be deposited into eligible users’ accounts within 3 business days.

Eligible creditors hold allowed claims in the Convenience and Non-convenience classes. They complete all requirements outlined in the bankruptcy plan. They then qualify to receive distribution.

Retail and Institutional Creditors Set to Get Repayment from Distribution

According to the exchange, users will receive payments via their payment service provider, which is either Kraken, Bitgo, or Payoneer. This distribution covers both Convenience and Non-convenience classes.

As a result, retail creditors and institutional creditors alike will receive payments. The plan ensures broad participation across creditor groups.

FTX Convenience Class, which includes its retail traders and creditors, with small claims accounting for the majority of its creditors. However, non-convenience class refers to large creditors and those with complex claims, which are mostly institutions.

The exchange further sets out who will fall under those classes. These include Class 5A FTX.com customers, who will receive an additional 18% distribution, bringing their total distribution to 96%. Class 5B FTX US customers also receive 5% distribution, bringing their total to 100%.

Class 6A and 6B Creditors with unsecured claims and digital asset loan claims will also receive a further 15% distribution. That will bring their cumulative distribution to 100%. Those in Class 7 Convenience Claims will also get 120% distribution.

This may imply that the exchange has finally made several customers whole or even paid above their holdings. However, the value of customer holdings is calculated based on the price of assets as of late November 2022. At that time, the exchange filed for bankruptcy.

Bitcoin was trading around $16,000 at the time but has since reached a peak of $126,000 before falling to $70,000 range. This has continued to attract criticism of the distribution process. However, FTX has committed to repay between 118% to 142% to retail creditors.

For many, the fact that asset repayments are not in kind means they do not receive the true value of their assets. The bankrupt exchange set April 30, 2026, as the record date. Holders of preferred equity interests must be on record by then. They will be eligible to receive payment under the announced plan.

The actual distribution will take place on May 29, 2026. By the record date, users must finish their KYC process, submit all required tax forms, and certify ownership of their preferred equity interests.

FTX Convicted CEO SBF Insists Exchange was Liquid

FTX creditors are still recouping their losses more than three years after the exchange filed for bankruptcy. However, its former CEO, Sam Bankman-Fried, has been claiming the exchange was liquid at the time of bankruptcy.

SBF, who has been sentenced to 25 years, has become a vocal critic of the exchange bankruptcy plan on X. According to him, the exchange was never insolvent, and it was the lawyers who forced the bankruptcy filing.

The disgraced co-founder continues to appeal his conviction. In his court filing, he claims that FTX bankruptcy administrators mismanaged the exchange’s assets.

He claimed that bankruptcy administrators earned nearly $1 billion in fees. He also argued they sold several assets, including a stake in Anthropic, at a steep discount.

However, experts have disputed SBF’s claims, noting that solvency is different from liquidity. Former FTX executive Zane Tackett noted that the internal balance sheet showed that the exchange could not meet its immediate obligations.

SBF has also turned to praisesinger for President Donald Trump with several posts on X lauding Trump’s actions. This includes the current war in Iran. Many believe this is a move to secure a pardon, even though the White House has said it has no such plans.

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