FTX Recovery Trust will commence a $1.6 billion distribution to eligible creditors on September 30, 2025, as part of a broader $15+ billion liquidation plan; payments are mainly fiat and apply to both Convenience and Non‑Convenience Classes, following final claim verifications under the Chapter 11 Plan.
FTX Recovery Trust begins $1.6B third distribution on September 30, 2025
Disbursements follow pre-distribution verifications under FTX’s Chapter 11 Plan of Reorganization.
Major creditor frustration stems from fiat payouts being lower than current crypto market values (Bitcoin trading above $115k as of Sept 20, 2025).
FTX $1.6 billion payout starts Sept 30, 2025; creditors to receive fiat distributions under the Chapter 11 Plan — learn what this means for claims and market impact.
What is the FTX $1.6 billion payout and when will it start?
The FTX $1.6 billion payout is the Third Distribution by the FTX Recovery Trust, scheduled to begin on September 30, 2025. It will deliver fiat-centered payments to holders of allowed claims in the Plan’s Convenience and Non‑Convenience Classes after pre-distribution checks required under the Chapter 11 Plan.
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How will the FTX Recovery Trust distribute funds and which creditors are affected?
The distribution follows the Trust’s liquidation plan that totals over $15 billion in recoverable assets. Eligible creditors who completed pre-distribution requirements will receive allocations primarily in fiat. The payout covers both Convenience Class and Non‑Convenience Class claims, with amounts calculated under the confirmed Plan formulas.
Why are creditors frustrated about fiat payouts?
Creditors are concerned because fiat distributions may not reflect the present market value of crypto assets that have since appreciated. With Bitcoin trading at $115,804.25 and a market cap of $2.31 trillion as of September 20, 2025 (CoinMarketCap data), some creditors feel fiat settlements understate potential crypto recoveries.
How does this distribution compare to past exchange settlements?
This payout echoes earlier exchange recoveries—most notably the Mt. Gox process—where users received fiat settlements after markets had rebounded. That precedent fuels creditor frustration as liquidation-era valuations differ from today’s market prices, a recurring challenge in high-profile bankruptcy recoveries.
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The “Third Distribution” refers to the third major payout phase from the FTX Recovery Trust under the confirmed Chapter 11 Plan. It releases funds after pre-distribution checks to eligible creditors and represents another step toward full wind‑down and creditor recoveries.
Short-term market effects may come from liquidity flows as fiat payments are converted for spending or reinvestment. Analysts note potential reinvestment into DeFi and spot markets, but large-scale liquidations could increase volatility depending on how recipients deploy funds.
This report is published by COINOTAG and prepared by reporter Sophia Panel. Publication and update date: 20 September 2025, 07:42:02 GMT.
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