FTX says it will begin its fourth creditor distribution on March 31, with about $2.2 billion set to go out to holders of allowed claims in the plan’s Convenience and Non-Convenience classes that completed the required pre-distribution steps. In the company’s official distribution announcement, the payout is part of the exchange’s Chapter 11 plan and will be processed through BitGo, Kraken and Payoneer.
That makes this more than a routine bankruptcy update. Another multi-billion-dollar tranche is now moving from the recovery estate into creditor accounts, which means a new pool of cash is about to become spendable, withdrawable or potentially recyclable into crypto markets.
According to FTX, the March 31 distribution will follow the waterfall priorities set in the confirmed plan.
Allowed Class 5A Dotcom Customer Entitlement Claims will receive an incremental 18% distribution, bringing cumulative distributions to 96%. Allowed Class 5B U.S. Customer Entitlement Claims will receive 5%, bringing cumulative distributions to 100%.
Allowed Class 6A General Unsecured Claims and Class 6B Digital Asset Loan Claims will each receive 15%, bringing both categories to 100% cumulative distributions. Allowed Class 7 Convenience Claims will reach a cumulative 120% distribution.
Those percentages matter because they show how far the recovery process has moved. Several classes are now at or effectively near full recovery under the plan’s framework, even if that recovery is based on bankruptcy claim values rather than current crypto market prices.
FTX says eligible creditors should expect to receive funds from their selected distribution service provider within one to three business days from March 31. The available providers are BitGo, Kraken and Payoneer.
The distribution mechanics also matter. In FTX’s support documentation for distribution service providers, the recovery trust says all distributions are made to service providers in U.S. dollars, after which recipients can choose among fiat withdrawal and, depending on the provider and jurisdiction, digital-asset or stablecoin purchase options.
This is important because the market impact depends on what creditors do next. A payout routed in dollars does not automatically become crypto buying pressure, but it does create optionality. Creditors can move funds to bank accounts, keep them in fiat, buy stablecoins or rotate back into digital assets through the provider they selected.
The headline number matters on its own, but the mechanism matters more. When a bankruptcy estate releases billions of dollars in fresh distributions, the effect is not only legal or administrative. It also changes who controls that liquidity.
Under the January update from FTX, the March 31 round was paired with an effort to reduce the disputed claims reserve by more than $2.2 billion, from $4.6 billion to $2.4 billion, which helped free up additional cash for this payment cycle.
That means this round reflects both asset recovery progress and a shrinking reserve burden. In practical terms, more money that had been locked against disputed claims is now being pushed outward to creditors with allowed claims.
For crypto markets, that creates a familiar but uncertain setup. Some recipients may simply cash out and leave the episode behind. Others may treat the payout as fresh deployable capital. The exact effect on Bitcoin, altcoins and stablecoin demand will depend on how much of the distributed cash stays in traditional finance and how much returns to digital-asset rails.
FTX also said April 30 has been set as the record date for a May 29 payment to preferred equity holders, consistent with the plan and the preferred shareholder agreement.
That detail matters because it shows the wind-down is moving beyond customer and unsecured creditor recovery into later layers of the capital structure. In other words, the estate is not only making another large customer-facing payout. It is moving deeper into the broader recovery waterfall as more claims become payable.
FTX says only holders of allowed claims that completed the pre-distribution requirements by the relevant record date are eligible for this round. That includes completing KYC, submitting tax forms and onboarding with a selected provider.
The company also warned users to watch for phishing attempts and said the recovery trust will never ask users to connect wallets. That warning matters because large payout rounds tend to attract scam campaigns targeting creditors who are waiting for funds.
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