FTX’s $900M payout drops Friday, triggering 6-month countdown for creditors to onboard or forfeit funds entirely

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 prov...