FTX starts $900M payout, but some creditors face claim deadline

FTX is set to distribute about $900 million on July 31, but only creditors who met strict June 16 requirements will be paid in this round. That matters because the process still leaves some users waiting, and in some cases facing a deadline that could wipe out their claims.

The payment applies to allowed claims in Classes 5A, 5B, 6A, 6B, and 7. To qualify, the original holder had to complete KYC by June 16, submit a valid tax form, pass sanctions screening, and finish onboarding with BitGo, Kraken, or Payoneer. FTX said eligible users should receive funds within one to three business days starting July 31.

A separate problem remains for residents in 45 jurisdictions, where no distribution provider is currently available. FTX says coverage can change, but for now those claims are deferred until a provider supports that location and the creditor completes onboarding. Even where an option appears in the portal, the provider still makes the final onboarding decision.

FTX also said creditors cannot split distributions across providers, and that choice is final. More importantly, an allowed-claim holder who does not successfully onboard within six months of July 31 may lose the right to distributions on that claim.