FTX begins $900M distribution for creditors on July 31

FTX will initiate a fifth distribution of approximately 900 million dollars under its Chapter 11 plan on July 31, paying holders of allowed Convenience and Non-Convenience claims who met the June 16 record-date and pre-distribution requirements. Eligible creditors are expected to receive funds from BitGo, Kraken, or Payoneer within one to three business days after July 31. Claim holders must have satisfied the Plan's know-your-customer requirements and submitted a valid tax form to be eligible for payment. Missing any June 16 eligibility criteria means no payment will be made. A six-month window begins on July 31 for allowed claim holders still awaiting provider onboarding; failure to complete onboarding may result in forfeiture of distribution rights. The Plan outlines different payment percentages across creditor classes, with Class 5A Dotcom Customer Entitlement Claims receiving a 9% payment, totaling 105% cumulatively, and Class 5B U.S. Customer Entitlement Claims receiving 5%, also totaling 105%. Classes 6A and 6B will receive 3%, reaching 103% cumulatively. Additionally, a separate $18 million payment will be made to eligible preferred-equity holders, totaling 95 million dollars. The Bahamas process will also begin distributions on July 31, with rates to be confirmed later.

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