FTX Recovery Plan Delivers $1.6 Billion in Third Wave of Payments

Key Highlights

• FTX to repay $1.6B in third wave of creditor payments this month
• Some customer classes reach up to 95% recovery rate
• Over 40 countries excluded from payouts due to restrictions

FTX Creditors Set to Receive $1.6 Billion in Third Round of Payments

Bankrupt crypto exchange FTX and the FTX Recovery Trust have confirmed the launch of a third wave of creditor payments totaling $1.6 billion. According to the restructuring plan, payouts will begin on September 30, 2025, marking one of the most significant steps yet in the company’s Chapter 11 recovery process.

Which Creditors Will Receive Funds

FTX announced that payments will be made to creditors with approved claims in both the Convenience and Non-Convenience classes, pending the completion of earlier procedures. Distributions will be handled by partners including BitGo, Kraken, and Payoneer, with recipients expected to see funds in one to three business days after processing.

The breakdown of compensation for this round is as follows:

• Class 5A (Dotcom Customer Entitlement Claims): additional 6%, bringing total recoveries to 78%
• Class 5B (US Customer Entitlement Claims): 40%, reaching 95% overall
• Class 6A (General Unsecured Claims): 24%, bringing recoveries to 85%
• Class 6B (Digital Asset Loan Claims): 24%, also reaching 85% overall
• Class 7 (Convenience Claims): 120% recovery

To claim payouts, lenders must complete KYC verification, provide tax documentation, and register with one of the approved distribution partners.

Restrictions and Ongoing Legal Battles

Not all creditors will be eligible for compensation. In July, one of FTX’s creditors, Sunil Kavuri, published a list of 49 jurisdictions where payouts are blocked due to local restrictions on crypto or partner limitations. Countries such as Ukraine are on the exclusion list.

Meanwhile, FTX-related litigation continues. In August, investors filed a lawsuit against California law firm Fenwick & West, accusing it of offering “substantial assistance” in FTX’s fraudulent activities and being deeply involved in operations that funneled client funds.