FTX Plans March 31 Payout as $2.2B Creditor Distribution Pushes Total Repayments Past $6B

The collapsed crypto exchange FTX is preparing to release another $2.2 billion to creditors, marking its fourth major payout since entering bankruptcy proceedings. The distribution is scheduled to begin on March 31, with funds expected to reach eligible recipients within three business days.

This latest round will be facilitated through platforms like BitGo, Kraken, and Payoneer, ensuring a streamlined process for both retail and institutional claimants.

FTX has already returned more than $6 billion to former users and investors, and this new tranche further advances its broader effort to resolve claims under its Chapter 11 restructuring plan. The payouts are split between “convenience” creditors—primarily retail users with smaller balances—and “non-convenience” creditors, which include larger and more complex claims.

Retail-focused convenience claims continue to see strong recovery rates, with payouts ranging between 118% and 142% of account values at the time of FTX’s collapse in 2022. Meanwhile, several non-convenience categories are being brought closer to full reimbursement. Notably, “Dotcom Customer Entitlement Claims” (Class 5A) will now recover up to 96%, while other groups—including U.S. customer claims and general unsecured creditors—are being adjusted upward to reach near or full recovery.

Convenience class creditors (Class 7) are once again set to receive around 120% of their original balances, reinforcing FTX’s focus on prioritizing smaller account holders.

The exchange’s downfall in late 2022 coincided with a sharp crypto market downturn, when Bitcoin plunged to around $15,760. Around that same time, founder Sam Bankman-Fried stepped down as CEO as the company filed for bankruptcy.

In 2024, U.S. Judge John Dorsey approved FTX’s restructuring plan, setting the stage for ongoing repayments. Bankman-Fried, who was convicted in 2023 on multiple criminal charges and sentenced to nearly 25 years in prison, has continued to criticize the bankruptcy process. He argues that the exchange was not insolvent and could have recovered without entering bankruptcy.

His legal team has also raised concerns about nearly $1 billion in administrative and advisory fees, as well as the handling of certain asset sales—including a stake in AI firm Anthropic—which they claim were undervalued.

Despite these objections, the repayment process has steadily progressed, with FTX now nearing full restitution for many creditors—an outcome rarely seen in large-scale crypto bankruptcies.