FTX creditors to receive $1.6 billion in third distribution on September 30, accelerating repayments amid ongoing bankruptcy proceedings and recovery efforts.
The FTX Recovery Trust has announced a third distribution of funds worth approximately $1.6 billion. The payout is scheduled for September 30, 2025. It is part of the company’s ongoing Chapter 11 bankruptcy proceedings. This is the biggest move towards compensating former clients and creditors since the collapse of the exchange in November 2022.
FTX to Begin Third Payout Round via BitGo, Kraken, Payoneer
Payments to eligible creditors will be made under one of three acceptable Distribution Service Providers, which are BitGo, Kraken or Payoneer. With the release of the payout, it is expected to take one to three business days to get the funds. This is meant to provide fast safe access to recovered assets.
The Chapter 11 Plan of FTX provides that various categories of claimants will have different percentages according to the claims. These are called waterfall priorities which implies that there are claimants that are paid ahead of others based on the kind of claim that they had made.
Related Reading: FTX Estate Unstakes $45M in Solana, Sparking Curiosity
Dotcom Customer Entitlement Claims (Class 5A) will obtain a payment of 6 percent of this round, and will have fully recovered 78 percent. U.S. Customer Entitlement Claims (Class 5B) will be distributed 40 percent, and cumulative recovery will be 95 percent. These numbers indicate great development of the repayment process.
Class 6A and Class 6B General Unsecured Claims will have a 24% payout and Digital Asset Loan Claims, respectively. This has recovered them 85 percent to date. Lastly, Convenience Claims (Class 7) will be reimbursed 120% and hence will be fully reimbursed with extra amount.
FTX Trust to Announce More Distribution Dates Soon
The initial two distributions were aimed at reimbursing money to individual and small claimants. These, in most instances, contained 120% refunds of the original account balances at the time of bankruptcy. However, there have been users who have been frustrated. They contend that the monetary payment of cash will fail to capture the increased worth of their crypto positions at present.
Meanwhile, creditors will have to follow some steps in order to qualify in this round of payments. First, users must open the FTX Customer Portal and complete the KYC verification. Then, they need to provide all necessary tax documents and select a Distribution Service Provider. This provider is impossible to change after it is selected.
The FTX Recovery Trust has indicated that it will declare more dates of distribution soon. Such payments in the future will still have the same form as the court-accredited scheme. In addition, the Trust believes in being transparent and fair in the process.
Although not every creditor is content with the calculation of values, the fact that it is still paid is an indicator of progress. The FTX case is one of the most significant and sophisticated bankruptcy cases in the history of the crypto market as the latter recovers.
Creditors may receive more updates by stopping by the official FTX Claims Portal or reaching out to their service provider of choice. The Trust champions the need to keep oneself updated and follow all procedures towards timely payments.