FTX Creditors to Receive $1.6 Billion in Third Major Payout

FTX’s bankruptcy estate will release $1.6 billion to creditors on September 30, marking the third major distribution since the crypto exchange collapsed nearly three years ago. The FTX Recovery Trust, which oversees the process, confirmed that verified claims will be processed through BitGo, Kraken, or Payoneer, with funds expected to reach accounts within three business days.

This payout significantly boosts creditor recoveries. U.S. customer claims will receive an additional 40%, raising their total recovery to 95%. International “dotcom” users will see another 6%, bringing overall distributions to 78%. General unsecured and digital asset loan claims will gain 24%, lifting recoveries to 85%. Convenience claims, designed for smaller creditors, will be paid at 120%—exceeding the original amounts owed.

The September release follows earlier rounds that have already returned more than $6 billion to creditors. The distributions are part of ongoing efforts to recover and return assets lost when FTX collapsed in November 2022, triggering a massive downturn in the crypto industry.

Sam Bankman-Fried, the exchange’s founder, is currently serving a 25-year prison sentence after being convicted on seven counts of fraud and conspiracy. His downfall remains one of the most infamous events in cryptocurrency history, underscoring the risks of centralized exchanges and the importance of regulatory oversight.

For creditors, this latest payout brings them closer to full recovery—an outcome rarely seen in major bankruptcies. The FTX Recovery Trust has indicated that additional rounds may follow, depending on future asset recoveries, giving hope to remaining stakeholders still awaiting compensation.