1 day ago
7
FTX will begin an approximately $900 million fifth distribution under its Chapter 11 plan on Friday, July 31, paying holders of allowed Convenience and Non-Convenience claims who met the June 16 record-date and applicable pre-distribution requirements.
Eligible creditors should receive funds from BitGo, Kraken or Payoneer within one to three business days from July 31, according to FTX’s fifth-distribution notice.
FTX’s July 24 creditor FAQ distinguishes allowed-claim status from readiness for payment. The original claim holder had to satisfy the Plan’s know-your-customer requirements by June 16. Once the claim was allowed, its holder also had to submit a valid tax form, successfully onboard with a distribution provider and pass sanctions screening by that date.
That sequence matters because claim allowance and payment readiness are separate gates. A claim could be allowed even if its holder had not submitted a valid tax form, completed provider onboarding or passed sanctions screening by the record date.
Missing any applicable June 16 eligibility or pre-distribution requirement means the holder will receive no July 31 payment. For an allowed claim holder still awaiting successful provider onboarding, July 31 also opens a six-month window. If onboarding remains incomplete throughout that period, the holder may forfeit the right to receive distributions on the allowed claim. Tax forms follow a separate timeframe under Section 7.14 of the Plan. Under the FAQ, failure to submit a valid tax form within the Plan’s own timeframe can also forfeit the distribution.
The Plan waterfall sets different fifth-round payments across creditor classes. Allowed Class 5A Dotcom Customer Entitlement Claims are slated for an incremental 9% payment, taking their cumulative distribution to 105%. Class 5B U.S. Customer Entitlement Claims are slated for a 5% payment and 105% cumulative distribution. Classes 6A General Unsecured Claims and 6B Digital Asset Loan Claims are each slated for 3%, taking both to 103% cumulatively. FTX lists Class 7 Convenience Claims at a 120% cumulative distribution. FTX said actual class percentages may vary slightly because of rounding.
Two other July 31 processes have their own terms. The Preferred Shareholder Remission Fund Trust is scheduled to make a separate $18 million second payment to eligible preferred-equity holders, bringing its total payments to $95 million. FTX Digital Markets administers the Bahamas process separately, and its distribution notice said eligible non-convenience and catch-up distributions were expected to begin July 31, with the rate to be confirmed later.
The approximately $900 million figure applies to the Chapter 11 creditor distribution. The preferred-equity payment and Bahamas process proceed under their distinct terms, while the six-month onboarding provision governs allowed claim holders whose provider setup remains incomplete.
