FTX Adds Payoneer for Customer Asset Distribution

FTX and FTX Digital Markets Ltd. (FTX DM) have announced a significant development in their customer asset distribution process. The companies have entered into agreements with Payoneer, a global financial technology company, to assist in distributing recoveries to retail customers in supported jurisdictions. This move is in accordance with the FTX Chapter 11 Plan of Reorganization, confirmed by the United States Bankruptcy Court for the District of Delaware, and the FTX DM liquidation process before the Commercial Division of The Supreme Court of The Bahamas.

Payoneer will join BitGo and Kraken as the third distribution service provider for FTX and the second for FTX DM. Customers who select Payoneer and request to be onboarded as a Payoneer customer will be directing FTX to pay any cash distributions directly to Payoneer. Payoneer will then credit the customer's selected bank account with the corresponding amount in the applicable currency. This process will be available for distributions to be processed after May 30, 2025.

Customers need to be aware that by choosing Payoneer, they are forgoing their right to receive cash distributions directly from FTX. Instead, they will receive the distributions through Payoneer. If customers have any questions related to the disbursement of the funds, they should contact the customer support of their chosen distribution service provider directly.

To be eligible to receive a distribution on a subsequent distribution date, customers and other creditors must complete several steps prior to their distribution record date. These steps include logging into the FTX Customer Portal, completing the required Know Your Customer (KYC) verification, submitting the required tax forms, and onboarding with either BitGo, Kraken, or Payoneer. FTX will provide instructions for onboarding with each of the distribution service providers on the existing FTX Customer Portal.

This addition of Payoneer as a distribution service provider is a strategic move by FTX and FTX DM to enhance the efficiency and convenience of the distribution process for their customers. By offering multiple distribution service providers, FTX aims to provide more options and flexibility to its customers, ensuring that they can receive their distributions in a timely and secure manner. This development is part of the ongoing efforts by FTX and FTX DM to fulfill their obligations under the Chapter 11 Plan of Reorganization and the liquidation process, respectively.

FTX's decision to add Payoneer as a third distribution partner is a significant step in streamlining the asset recovery process for its customers. By partnering with Payoneer, FTX is expanding the options available to customers, allowing them to choose the most convenient method for receiving their distributions. This move is likely to improve customer satisfaction and trust in the recovery process, as it provides more flexibility and control over how and when they receive their funds.

The addition of Payoneer as a distribution service provider is also a testament to the company's commitment to transparency and efficiency in the asset recovery process. By working with multiple partners, FTX is ensuring that the distribution process is as smooth and efficient as possible, minimizing delays and complications for customers. This approach is likely to set a positive precedent for other companies facing similar challenges, demonstrating the importance of collaboration and innovation in resolving complex financial issues.