FTX to Disburse $1.6B In September to Creditors in Third Round of Payouts

Key Insights:

• FTX Recovery Trust will release $1.6 billion to creditors on Sept. 30.

• This is the third payout, following earlier distributions in February and May.

• Claimants will receive between 6% and 120%, depending on their claim type.

The FTX Recovery Trust has announced its third major distribution of funds to creditors, confirming that $1.6 billion will be disbursed at the end of September.

The payout, scheduled for September 30, is part of the ongoing effort to return up to $16.5 billion in recovered assets to those impacted by the exchange's collapse in 2022.

This marks the third wave of repayments since the Recovery Trust began operations earlier this year. Previous distributions included $1.2 billion in February and $5 billion in May.

According to the Trust, affected customers should see funds land in their accounts within three business days of the payment date.

Breakdown Of September’s Creditor Reimbursements

In this latest round, payouts will vary by claim type:

• Dotcom Customer Claims: 6% payout.

• U.S. Customer Entitlement Claims: 40% payout.

• General Unsecured and Digital Asset Loan Claims: 24% payout.

• Convenience Claims: 120% reimbursement.

The FTX Recovery Trust has been tasked with processing and distributing the billions in recovered assets following the collapse of the once-prominent crypto exchange.

As part of the court-approved plan, different types of claims receive varying levels of repayment based on legal classifications and available funds.

September’s round of reimbursements is expected to impact a wide range of stakeholders, from retail investors to institutional clients and lending platforms.

While the recovery percentage still leaves many users partially compensated, the Trust’s transparent payout process and growing disbursement size have added a layer of hope for those affected.

A Milestone In The Shadow Of FTX Collapse

One of the biggest crypto bankruptcies in history remains the FTX bankruptcy that happened in November 2022. The collapse of the exchange caused mass sell-offs, regulatory crackdowns and investor panic.

These events led to the crypto bear market which had already begun earlier in the year. In March 2024, Sam Bankman-Fried, the former CEO and founder of FTX, was sentenced to 25 years in prison on charges of fraud and conspiracy in the collapse of the exchange.

The Judge who presided over the case, labeled Bankman-Fried’s actions as a “serious” breach of trust and investor confidence.

With more than $7.8 billion already returned and further tranches expected, the FTX Recovery Trust continues to play a critical role in reshaping the legacy of the exchange not only through restitution, but also by setting a precedent for how crypto-related bankruptcies are handled going forward.