The FTX Recovery Trust is preparing for a new round of creditor payouts, with approximately $2.2 billion set to be distributed in the next phase, scheduled to commence on March 31, 2026.
This upcoming distribution marks a significant milestone in the bankruptcy proceedings of the defunct cryptocurrency exchange, indicating that its asset recovery efforts are nearing near-full restitution for the majority of its creditors.
Creditors are expected to receive their funds via BitGo, Kraken, or Payoneer within one to three days after March 31, provided they have completed registration, identity verification, and necessary tax form submissions.
This development comes as prosecutors are countering FTX co-founder Sam Bankman-Fried's request for a new trial, arguing he has failed to demonstrate any unfairness during his conviction.
FTX has implemented a carefully structured compensation system, categorizing creditors based on claim types, including customer funds, loans, or small claims. Considering the global user base and diverse loss scenarios, FTX will assess claims based on type and amount to ensure equitable and consistent treatment for all creditors under unified rules.
Notably, international users (Class 5A) will receive an additional 18% in compensation, bringing their total recovery to approximately 96%, offering long-awaited hope for full repayment.
For small claims (Class 7), creditors will receive compensation exceeding their loss amount (up to 120%), a rare occurrence in past bankruptcy cases.
To date, FTX has returned over $6 billion in assets to creditors, including the upcoming $2.2 billion distribution in March, alongside approximately $1.2 billion in early 2025, $5 billion around May 2025, and $1.6 billion in September 2025.
In the aftermath of FTX's collapse in 2022, industry-wide concerns about asset recovery were rampant. However, with more payouts being processed and recovery rates improving, the situation has significantly shifted.
Therefore, this latest $2.2 billion distribution signals that full compensation is now within reach after a long and previously bleak waiting period.
FTX has established payment processes and deadlines for creditors and equity holders.
FTX is utilizing distribution service providers to compensate users in USD, based on the options supported by each platform, to minimize delays and confusion and streamline management.
Each service provider operates differently, allowing users to choose their preferred payout method based on regional availability. For instance, platforms like BitGo and Kraken permit users to receive funds in cash, cryptocurrency, or stablecoins, and even transfer assets to other wallets.
Payoneer, on the other hand, directly deposits funds into bank accounts, depending on the user's location, regional regulations, and minimum transfer amounts.
In the upcoming payout cycle starting March 31, eligible users can expect to receive funds within 1 to 3 business days, provided they first log into the FTX customer portal, complete identity verification (KYC), and submit the necessary tax documents.