The FTX Recovery Trust has confirmed that its next major creditor payout will begin on March 31, 2026, unlocking approximately $2.2 billion for distribution after a court-approved adjustment to its reserves.
The update marks another step in the long-running recovery process following the collapse of FTX in November 2022. The estate has now entered its fourth distribution phase under the Chapter 11 restructuring plan.
Record date set as reserve reduction frees cash
FTX set February 14, 2026 as the record date for eligible claims tied to the upcoming distribution. Only creditors with allowed claims that meet pre-distribution requirements will receive funds in this round.
The payout follows an amended filing that reduced the disputed claims reserve from $4.6 billion to $2.4 billion. The adjustment released more than $2 billion in cash for creditors, subject to court approval.
This reserve reduction has played a central role in enabling distributions. Funds previously held back to cover unresolved claims can now move into active repayment once legal thresholds are met.
Payments routed through distribution partners
FTX will process payments through three designated service providers: BitGo, Kraken, and Payoneer.
Creditors must complete Know Your Customer verification, submit tax documentation, and onboard with one of these providers before receiving funds. Once FTX transfers funds to a selected provider, individuals assume responsibility for managing their balances.
The trust stated that payments should arrive within one to three business days after March 31 for eligible participants.
For transferred claims, only holders listed on the official claims register as of the record date will qualify. A 21-day notice period must also pass without objection before distribution proceeds.
Recovery rates improve across creditor classes
The fourth distribution increases recovery levels for several categories of claimants. U.S. customer entitlement claims will receive a final 5% allocation, which completes a full 100% recovery based on petition-date values.
General unsecured claims and digital asset loan claims will each receive an additional 15%, also reaching full repayment. Convenience claims, which often include smaller retail balances, will reach a cumulative recovery of 120%. This figure includes an interest component.
Dotcom customer claims will receive an 18% increase, bringing their total recovery to 96%. This group remains below full repayment, with additional distributions expected in future rounds.
All payouts are calculated using asset values at the time of FTX’s bankruptcy filing in 2022, rather than current cryptocurrency market prices.
Preferred equity holders enter separate timeline
FTX has also established a separate process for preferred equity holders. The record date for that group is set for April 30, 2026, with initial payments scheduled for May 29.
Eligible participants must complete ownership certification, KYC verification, and tax requirements before the deadline. Outreach to this group began in January, according to the trust.
This parallel track reflects the complexity of FTX’s capital structure, which includes both customer claims and equity interests.
Security concerns emerge during distribution phase
FTX issued a phishing advisory alongside the announcement, warning users about fraudulent emails and fake websites that mimic official communication channels.
The trust emphasized that it will never request users to connect crypto wallets. It urged creditors to rely only on official portals and verified service providers when accessing their funds.
This warning comes as distribution events often attract malicious activity. Large-scale payouts create opportunities for attackers to target users who expect incoming funds.
Long recovery process approaches final stages
The March distribution follows three earlier rounds that returned billions of dollars to creditors. Previous payouts included $1.2 billion in early 2025, followed by additional distributions in May and September.
Court filings have estimated total recoveries between $14 billion and $16 billion. The process has gradually restored value to customers who lost access to funds after the exchange’s collapse.
The failure of FTX triggered a major downturn in the crypto market and led to legal consequences for its leadership. Sam Bankman-Fried received a 25-year sentence after conviction on fraud and conspiracy charges.
Next steps for creditors
Creditors who have not completed onboarding requirements remain ineligible for the March payout. They can qualify for future distributions by completing verification steps before upcoming record dates.
FTX continues to direct users to its official claims portal for all actions related to the recovery process. The structured timeline shows that the estate has entered a later phase, where several creditor groups approach full or near-full repayment.
The March 31 distribution represents one of the largest single releases of funds since the bankruptcy began. It will return capital to thousands of users who have waited more than three years for access to their balances.
Matvii Diadkov
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