The FTX Recovery Trust has announced a major milestone in the defunct exchange's bankruptcy proceedings, scheduling a fourth distribution of approximately $2.2 billion to eligible creditors for March 31, 2026. This payment is part of the company's Chapter 11 restructuring plan and will bring several creditor classes to near or full repayment.
Key details of the distribution reveal that Dotcom customer receivables will reach a total repayment rate of 96% with an additional 18% payment. US customer receivables will be fully covered at 100% with a new 5% distribution. General unsecured receivables and digital asset loan receivables will also achieve 100% coverage with a 15% payment. Notably, Convenience class creditors will see their total repayment rate increase to 120%.
The operational process requires creditors to have completed Know Your Customer (KYC) verification, submitted approved tax forms, and have a reconciled claim status before the record date. Payments are expected to be credited within 1 to 3 business days via distribution partners BitGo, Kraken, or Payoneer, depending on the creditor's chosen provider.
Creditor representative Sunil Kavuri emphasized that "reducing the disputed claims reserve is critical to increasing liquidity." The planned $2.2 billion distribution is tied to a proposed reduction of this reserve, which holds cash for unresolved obligations. This move aims to release frozen funds and accelerate payments for creditors with already-reconciled claims. The total pool of reconciled claims stands at approximately $9.6 billion, segmented between claims below $50,000 and larger or non-customer-linked claims.
In a separate announcement, FTX also detailed a payment schedule for preferred shareholders. April 30, 2026, has been set as the registration date for this group, with payments planned for May 29, 2026. The overall liquidation process is managed by the plan administrator with support from financial advisors Alvarez & Marsal, under the direction of John J. Ray III.
