Reports have disclosed that the FTX Recovery Trust is preparing to release another $1.6 billion to its creditors by September 30. The payout marks the third distribution since the exchange collapsed in late 2022, and payments are expected to reach verified claimants within three business days once they are processed through BitGo, Kraken, or Payoneer.
FTX: Breakdown Of Payout Classes
The upcoming release will be divided among several groups. US customer claims will get an additional 40% this round, pushing their total recovery to about 95%.
International customers under the dotcom entity will receive another 6%, bringing them closer to 78% overall. General unsecured creditors, along with those holding digital asset loan claims, will see 24% more, which raises their cumulative recovery to nearly 85%.
Convenience claims are also being settled in full, with reports stating they will receive 120% compared to their original claims. These are usually smaller cases that are handled quickly to reduce costs and speed up the overall process.
Verification And Distribution
Creditors who want to access the payout must have completed all required verification steps. The trust has already urged claimants to confirm their chosen payment channel before the deadline, as unverified accounts risk delays.
Once released, the funds are expected to clear into accounts within days, giving long-awaited relief to thousands who lost money in the collapse.
The payment in September is part of a larger FTX recovery process that has earmarked as much as $16.5 billion in assets to be returned to creditors.
While progress has been steady, many customers have still complained about the freezing of valuations at their November 2022 prices. At that time, digital currencies like Bitcoin and Ether traded far below the levels that would occur in 2025.
FTX: Questions On Fairness Remain
The question of fairness remains. Smaller convenience claims receive more than what they lost, while large creditors argue theirs should be weighed against the stagnant valuations of their assets.
This was intended under the company’s legal documents to facilitate administration and avoid extensive litigation, but it raised the ire of foreign creditors that have greater impediments than creditors situated in the US.
For now, the $1.6 billion payment is yet another milestone to the FTX rescue process, but it does not solve all the complaints.
With billions already paid out in previous rounds, the trust is still under pressure to continue disbursing and to finally bring closure to one of the largest cryptocurrency bankruptcies in history.
Featured image from Andrey Rudakov/Getty Images, chart from TradingView
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