FTX Begins Massive $2.2 Billion Repayment Round as Creditors Prepare for Another Major Distribution

Key Highlights

• FTX has launched its fourth major creditor distribution worth approximately $2.2 billion
• Total repayments from the bankruptcy process are now approaching $10 billion
• Eligible creditors were required to complete KYC and tax verification before the February deadline
• Payments are being processed through BitGo, Kraken, and Payoneer
• Some creditor groups have now reached full recovery based on 2022 claim values
• Debate continues over whether payouts based on 2022 crypto prices are truly “full recovery”

The long-running FTX bankruptcy process has entered another major phase after the FTX Recovery Trust officially confirmed the start of a new $2.2 billion creditor distribution round. The payments, which began on March 31, represent the fourth major payout since the exchange collapsed in late 2022 and push total repayments toward the $10 billion mark.

According to official announcements, the latest distribution covers both Convenience and Non-Convenience claim classes under FTX’s Chapter 11 reorganization plan. Eligible creditors who completed all onboarding requirements are expected to receive funds within one to three business days through their selected distribution provider.

The repayment structure varies depending on the creditor category. U.S. customer entitlement claims are receiving an additional 5% distribution, bringing cumulative recovery to 100%. General unsecured claims and digital asset loan claims are also reaching full recovery after an additional 15% payout. Meanwhile, Dotcom customer claims are receiving another 18% distribution, bringing cumulative recovery to approximately 96%. Convenience Class creditors — generally smaller claims — are reportedly reaching 120% cumulative recovery.

To qualify for this round, creditors were required to complete several steps before the February 14, 2026 record date. These included KYC and AML verification, submission of tax documentation such as W-8 or W-9 forms, and onboarding through one of the approved distribution service providers. Creditors who missed the deadline are not eligible for the current distribution cycle.

The distribution process itself is being handled through three approved providers: BitGo, Kraken, and Payoneer. Creditors selecting BitGo or Kraken can choose between cash, stablecoins, or crypto conversions after receiving their USD-denominated payouts. Payoneer distributions are generally transferred directly to linked bank accounts, depending on regional availability and banking rules.

Despite the progress, the repayment process remains controversial across the crypto community. One of the biggest criticisms is that claim values are calculated using cryptocurrency prices from November 2022, when Bitcoin traded near $16,000 following the collapse of FTX. Since then, crypto markets have recovered substantially, meaning many former users are receiving significantly less than the current market value of the digital assets they originally held.

Creditor advocate Sunil Kavuri has been among those arguing that the term “100% recovery” can be misleading because customers are not being repaid in the original crypto quantities they lost. Long-term Bitcoin and Ethereum holders, in particular, continue expressing frustration over missing much of the market rebound that occurred during the bankruptcy process.

At the same time, some market participants are watching closely to see whether portions of the newly distributed capital flow back into cryptocurrency markets. Discussions across crypto communities suggest opinions remain divided. Some traders believe former FTX users may reinvest into Bitcoin, Ethereum, Solana, or other digital assets, while others expect many creditors to simply cash out after waiting years for repayment.

The next phase of the bankruptcy process is already scheduled. Preferred equity holders face an April 30, 2026 record date ahead of an expected payment round on May 29. Additional distributions may also occur later depending on remaining recoveries, unresolved claims, and ongoing litigation tied to the collapse of the exchange.

Meanwhile, the legal aftermath surrounding former FTX CEO Sam Bankman-Fried continues. Recent reports indicate prosecutors remain strongly opposed to efforts seeking a retrial or clemency, while legal analysts broadly believe overturning his fraud conviction remains unlikely.