Three different figures are often mixed together: the allowed claim amount, a cumulative distribution percentage, and the interest rate in the Plan. They answer different questions. The allowed amount is the bankruptcy claim base; the cumulative percentage reports distributions announced against that base; the Consensus Rate is used in the Plan's interest calculation.
This distinction matters for a sale valuation and a creditor's own comparison. You cannot take a 105% cumulative distribution, call all of it principal, and then add another 9% for every year since November 2022.
Key facts
- As of the 31 July 2026 distribution, the Trust says all allowed interest-bearing claims had received or been reserved at least 100% cumulative (Trust Q2 2026 report, D.I. 36154).
- As of 31 July 2026, before that day's distribution, $2,413 million of accrued interest on allowed and estimated allowed claims remained unpaid (Trust Q2 2026 report, D.I. 36154).
- FTX's 31 July 2026 distribution took Class 5A (Dotcom customer) claims to 105% cumulative, for holders who met the requirements (FTX release, 17 July 2026).
- The plan's Petition Date, from which postpetition interest is counted, is 11 November 2022 (14 November 2022 for West Realm Shires Inc.) (Plan, D.I. 26404-1).
- The Initial Distribution Date, where interest on convenience claims stops under the plan, was 18 February 2025 (Trust Q1 2025 report, D.I. 30424).
- FTX's tax FAQ says U.S. holders of allowed claims not fully paid after 31 December 2025 will likely accrue interest income at 9% per annum (FTX tax FAQ, updated 29 Jan 2026).
What the Confirmed FTX Plan Actually Provides
The confirmed Plan, D.I. 26404-1, defines the Consensus Rate as 9.0% or a lower rate approved by the bankruptcy court. The treatment then varies by class. At confirmation on October 7, 2024, FTX said that 98% of creditors by number would receive approximately 119% of their allowed claims within 60 days after the effective date.
โ"Consensus Rate" means 9.0% or such lesser rate approved by the Bankruptcy Court.โ
- Second Amended Joint Chapter 11 Plan of Reorganization of FTX Trading Ltd. and Its Debtor Affiliates, D.I. 26404-1, October 8, 2024
Interest on customer claims is counted at 9% a year unless the court approves a lower rate, and is paid from funds available for it.
| Claim class | Interest treatment in the Plan |
|---|---|
| 5A Dotcom customers | 100% of the allowed claim plus interest at the Consensus Rate from the petition date through the applicable distribution date, to the extent of available funds under the waterfalls |
| 5B U.S. customers | The same 100%-plus-Consensus-Rate structure, subject to available funds and the applicable waterfalls |
| 6A and 6B | 100% plus interest at the lower of the Consensus Rate, applicable contract rate or another rate determined by the court or agreed by the parties |
| 7 Convenience Claims | 100% plus interest through the Initial Distribution Date; the applicable rate depends on the convenience subclass |
The phrase "to the extent of available funds" is part of the Plan treatment. The 9% Consensus Rate is therefore not a separate guaranteed coupon detached from the distribution waterfall.
Is the 105% Cumulative Distribution All Principal?
No. FTX's July 17, 2026 announcement says that the fifth distribution brought both Classes 5A and 5B to a 105% cumulative distribution. It does not describe 105% as principal.
The same announcement states a 103% cumulative distribution for Classes 6A and 6B and 120% for allowed Class 7 Convenience Claims. These are cumulative distribution figures as of that round. They are not annual rates, sale prices or a final percentage promised to every holder.
Which Amount Earns Interest, and for How Long?
For the non-convenience claims listed in section 7.1, post-petition interest accrues on the unpaid balance of the allowed claim from the November 11, 2022 petition date through the applicable distribution date on which that balance is paid. An earlier distribution reduces the unpaid balance used for the later period.
This is why multiplying the original claim amount by 9% and by the full number of years can overstate the result. The calculation must account for each distribution and the balance remaining after it. It must also respect the class treatment and available-funds limitation.
Convenience Claims use a different endpoint: their Plan treatment provides interest through the Initial Distribution Date. The announced 120% cumulative distribution should be read as a combined class result, not as 120% plus another interest payment.
What Interest Means If You Are Deciding Whether to Sell
Start with the rights that remain unpaid on the proposed transfer date. Prior distributions belong outside the comparison unless the contract specifically reallocates them. Then compare the offer with the expected future distributions attached to the portion being sold.
The sale documents determine which remaining distributions and related interest rights are assigned. A buyer can reflect those rights in its price, but that does not mean the offer equals the Plan rate or a headline cumulative recovery figure. Timing, claim status, prior distributions and contract terms all affect the comparison.
For a worked comparison using the same unpaid rights on both sides, see selling now versus waiting. For the difference between allowed amount and sale value, see what an FTX claim is worth in 2026.
Interest Payment and U.S. Tax Accrual Are Different
For U.S. taxpayers, the Trust's tax FAQ says an allowed claim that remained not fully distributed after December 31, 2025 may generate original-issue-discount interest income at 9% even before the cash is distributed. It also says a U.S. person who sold a Class 5A or 5B claim may receive Form 1099-OID for the part of the year in which the person held it.
That tax reporting statement does not calculate a creditor's Plan distribution or sale price. It shows why "interest accrued," "interest paid" and "interest reported for tax" must be treated as separate questions.
Interest Is Not the Same as Crypto Appreciation
One point causes more confusion than any other, so it is worth addressing directly. Interest in the FTX plan is not the same thing as the rise in crypto prices since the bankruptcy began.
FTX recovery is calculated on the petition-date value of each claim - the dollar value as of November 11 2022. If you held assets that have since risen sharply in market price, that appreciation is not part of your recovery. The plan does not pay you the current market value of what you once held; it pays the allowed claim amount fixed at the petition date, and then the interest the plan provides on top of that.
So when you read a cumulative recovery figure above 100%, do not interpret it as a crypto gain. It is measured against the allowed dollar claim, and the Plan's interest component is governed by the class treatment and distribution rules. A creditor expecting the claim to track the current token price is using the wrong base.
What the Plan Confirms About Interest
The controlling provisions are specific. Section 2.1.39 defines the Consensus Rate. Sections 4.3.6 and 4.3.7 state the treatment for Classes 5A and 5B. Section 7.1 says interest on non-convenience claims accrues on the unpaid balance and remains subject to available funds under section 4.2. Sections 4.3.11 through 4.3.13 address the Convenience subclasses.
โinterest shall be paid at the Consensus Rate to Holders of Allowed Dotcom Customer Entitlement Claims, Allowed U.S. Customer Entitlement Claims, โฆ in accordance with Section 7.1 of the Plan and the treatment set forth in Section 4.3 of the Plan.โ
- Findings of Fact, Conclusions of Law and Order Confirming the Second Amended Joint Chapter 11 Plan of Reorganization of FTX Trading Ltd. and Its Debtor Affiliates, D.I. 26404, October 8, 2024
If you hold an allowed customer or customer convenience claim, the confirmation order entitles you to interest at the Consensus Rate under Plan Sections 7.1 and 4.3.
Those provisions support a precise answer: the Plan provides interest, but neither the 9% rate nor a cumulative class percentage is a universal cash forecast for an individual claim. Use the claim's allowed amount, class, payment history and remaining balance.
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