FTX's Recovery Trust announced on March 18, 2026 that it will distribute approximately $2.2 billion to creditors in a fourth round of payouts beginning March 31, 2026. The distribution brings some creditor classes to full recovery while convenience claims reach a cumulative 120% payout under the Chapter 11 plan.
Eligible creditors will receive funds through BitGo, Kraken, or Payoneer within one to three business days from the March 31 start date, according to the official FTX Recovery Trust release. The fourth distribution marks one of the largest single payouts in the ongoing bankruptcy process.
Which Creditors Reach 100% and Who Gets 120%
Not all creditor classes are recovering at the same rate, and the headline figure of 120% applies only to one specific group. Allowed Class 7 Convenience Claims, typically smaller claims that opted into a simplified recovery process, remain at a cumulative 120% distribution.
Allowed Class 5B U.S. Customer Entitlement Claims and Allowed Classes 6A and 6B, covering General Unsecured and Digital Asset Loan Claims, each reach 100% cumulative distribution with this round. These creditors are now fully recovered under the plan's terms.
Allowed Class 5A Dotcom Customer Entitlement Claims receive an 18% incremental payout in this distribution, bringing their cumulative recovery to 96%. That class remains the only major group still short of full recovery. The progress mirrors a broader pattern of regulated financial infrastructure adapting to digital asset realities, as traditional bankruptcy processes handle crypto-native claims at scale.
Why the March Payout Matters in FTX's Restructuring
The distributions are being made under FTX's Chapter 11 Plan of Reorganization, overseen by the U.S. Bankruptcy Court. An official update on January 13, 2026 disclosed that FTX had filed to reduce its disputed claims reserve by $2.2 billion, from $4.6 billion to $2.4 billion, subject to court approval.
That reserve reduction is procedurally tied to this fourth distribution. By shrinking the pool of contested claims, FTX freed capital to accelerate payouts to creditors whose claims have already been validated. The mechanism reflects how large-scale billion-dollar capital movements in restructuring depend on court-approved reserve adjustments before funds can flow.
John J. Ray III, who has overseen FTX's restructuring, has previously stated that the team's focus "remains on recovering more for creditors and resolving outstanding claims." The fourth distribution suggests that effort is translating into concrete payouts.
Creditors who have not yet verified their accounts with one of the three distribution service providers, BitGo, Kraken, or Payoneer, will need to do so before they can receive funds. The process reflects the hybrid nature of FTX's bankruptcy, where traditional legal mechanisms intersect with digital payment infrastructure to settle claims originally denominated in cryptocurrency.
With Class 5A creditors at 96% cumulative recovery and the disputed claims reserve now reduced to $2.4 billion, any subsequent distribution rounds will depend on further court rulings and the resolution of remaining contested claims.
Disclaimer: This article is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency and digital asset markets carry significant risk. Always do your own research before making decisions.