FTX to Release $1.6B in Third Payout to Creditors on Sept. 30

Key Points

• FTX’s third distribution of $1.6B begins Sept. 30, targeting both Convenience and Non-Convenience Classes.
• Cumulative payouts reach 95% for U.S. customers and 120% for Convenience Claims.
• Creditors must complete KYC, tax forms, and onboarding to receive funds through approved service providers.

FTX Recovery Trust will release approximately $1.6 billion to eligible creditors on September 30, 2025. This third payout follows earlier distributions made under FTX’s court-approved Chapter 11 bankruptcy plan.

The payment will reach creditors within one to three business days through Bitgo, Kraken, or Payoneer. The process includes both Convenience and Non-Convenience Classes under defined claim categories.

Claims to Receive Set Payouts Based on Priority Classes

Class 5A Dotcom Customer Entitlement Claims will receive an additional 6%, raising their total recovery to 78%. Class 5B U.S. Customer Entitlement Claims will get 40% more, reaching a 95% cumulative payout.

Additionally, Class 6A General Unsecured Claims and 6B Digital Asset Loan Claims will each receive a 24% installment. These classes will reach a cumulative distribution of 85% after the payment.

FTX has confirmed that Class 7 Convenience Claims will receive a full 120% payout as previously outlined in the bankruptcy plan. The company structured all distributions based on waterfall priorities listed in the approved framework.

Eligibility Depends on Pre-Distribution Compliance

Creditors must complete all pre-distribution steps before the record date to receive their payments. These include logging into the FTX Customer Portal, completing KYC, submitting tax forms, and choosing a service provider.

Transferees must also ensure their claims are recorded with no objections after the 21-day notice period. FTX emphasized that funds will only be paid to officially registered claim holders.

Distributions are calculated based on asset values at the time of the November 2022 bankruptcy filing. The court upheld this valuation despite the rise in crypto market prices since then.

FTX warned users about phishing attempts, stressing it does not request wallet access or sensitive details via email. Legal counsel and advisory services are being handled by Sullivan & Cromwell LLP and Alvarez & Marsal.

The company has recovered over $15 billion in assets from clawbacks, token holdings, and investment sales. The plan aims to repay up to $16.5 billion, including interest for most creditors.