FTX to Pay $1.6 Billion to Creditors on September 30

Bankrupt crypto exchange FTX will distribute $1.6 billion to creditors on September 30, 2025, marking the third major payout since the platform collapsed in 2022.

The official announcement came from FTX Trading Ltd. and the FTX Recovery Trust on September 19, 2025.

This latest distribution will bring total creditor recoveries to over $8 billion. FTX has already paid out $6.2 billion in two earlier rounds – the first distribution in February and $5 billion in May 2025.

Eligible creditors will receive funds through three approved companies: BitGo, Kraken, or Payoneer. Payments should arrive within one to three business days after September 30.

Who Gets Paid and How Much

Different groups of creditors will receive varying amounts based on their claim type:

• FTX.com customers will get an additional 6% (bringing their total recovery to 78%)
• U.S. customers will receive 40% (reaching 95% total recovery)
• General unsecured creditors will get 24% (reaching 85% total recovery)
• Small convenience claims will receive 120% of their original amount

Source: @FTX_Official

The August 15 deadline has already passed for creditors to qualify for this round. Those who missed the cutoff must wait for future distributions.

Court Approval Makes Payment Possible

A Delaware bankruptcy court made this distribution possible by reducing FTX’s disputed claims reserve. The court cut the reserve from $6.5 billion to $4.3 billion, freeing up $1.9 billion. However, the actual September 30 distribution amount is $1.6 billion.

This decision resolved disputes about certain claims that were previously marked as contested. The court determined these claims could be reclassified and paid out to their rightful owners.

FTX filed for bankruptcy in November 2022 after a liquidity crisis revealed widespread financial problems. Founder Sam Bankman-Fried was later convicted of fraud and sentenced to 25 years in prison.

Geographic Restrictions Create Controversy

A major dispute threatens to block payments to creditors in 49 countries. FTX wants to freeze approximately $470 million in claims from regions with unclear crypto regulations.

China accounts for the largest share of restricted claims at roughly $380 million. Other affected countries include Russia, Egypt, Ukraine, Pakistan, and Saudi Arabia. FTX argues that sending money to these areas could expose company officials to legal problems.

Over 300 Chinese creditors have filed objections through representative Weiwei Ji. They argue that U.S. dollar payments should be legally acceptable since Chinese law recognizes digital assets as personal property.

During a July court hearing, the judge told FTX to revise its restriction plan. The court said the exchange cannot simply seize creditor funds and must create a clear process for countries to appeal their restricted status.

Valuation Method Frustrates Some Creditors

FTX calculates claim values using cryptocurrency prices from November 2022 when the exchange filed for bankruptcy. At that time, Bitcoin traded between $16,000 and $20,000. Today, Bitcoin trades above $120,000.

This means creditors receive payments based on old, much lower crypto values rather than current market prices. Some creditors argue this approach unfairly reduces their recovery amounts.

The court maintains this November 2022 valuation system to ensure all claims are treated consistently. However, creditors may challenge this method in future legal proceedings.

Despite valuation concerns, FTX’s reorganization plan allows for up to $16.5 billion in total repayments. The plan includes full principal plus 9% annual interest for most creditors.

Requirements and Security Warnings

Creditors must complete several steps to receive payments:

• Complete identity verification through the FTX Customer Portal

• Submit required tax forms

• Set up an account with BitGo, Kraken, or Payoneer

• Pass sanctions screening

For creditors who bought or sold their claims, transfers must be finalized in the official registry. A 21-day notice period must pass without challenges before payments can be made.

FTX warns creditors about phishing scams that look like official communications. The company will never ask creditors to connect external wallets or provide private keys. All legitimate communications come through official channels only.

The Road Ahead: More Distributions Coming

About $4.3 billion remains in disputed claims reserves for future distributions. The resolution of geographic restrictions will significantly impact how much money eventually reaches creditors.

FTX creditor advocate Sunil Kavuri estimates $1.4 billion in claims still need resolution. Legal battles over country restrictions and valuation methods suggest the bankruptcy process will continue into 2026.

A secondary market has emerged where creditors can sell their claims to investment funds. Approximately $5.8 billion in FTX claims have been traded since the bankruptcy began. Claim prices have dropped 20-30% for creditors in restricted countries.

Recovery Against the Odds

The September 30 distribution represents remarkable progress for what initially appeared to be a total loss. When FTX collapsed, the exchange had lost nearly all customer cryptocurrency – only 0.1% of Bitcoin and 1.2% of Ethereum remained recoverable.

Current projections show 98% of creditors will receive at least 119% of their original claims based on 2022 valuations. This recovery rate stands out among major cryptocurrency exchange failures.

The success stems partly from aggressive asset recovery efforts by FTX’s legal team. They have pursued claims against related companies and recovered billions in misplaced funds.

The Final Chapter Nears

This massive payout brings closure within reach for thousands who lost money in one of crypto’s biggest collapses. While legal challenges remain, the September distribution proves that even catastrophic exchange failures don’t always mean permanent losses.

The FTX case may set important precedents for handling future cryptocurrency bankruptcies, especially regarding international creditor rights and asset valuation methods.