Class 7 Creditors Get 120% Payout in FTX's Third Distribution Phase

FTX Trading Ltd. and the FTX Recovery Trust announced on September 30, 2025, the initiation of a $1.6 billion distribution to creditors under the third phase of its Chapter 11 reorganization plan. This payout follows two prior distributions totaling over $6 billion and aligns with the court-approved waterfall structure prioritizing customer claims. Eligible creditors who completed pre-distribution requirements, including Know Your Customer (KYC) verification and onboarding with BitGo, Kraken, or Payoneer, began receiving funds within 1–3 business days of the distribution date FTX Recovery Trust to Distribute Approximately $1.6 Billion to Creditors in Third Distribution^[1].

The third distribution allocated incremental payments to multiple claim classes. Class 5A Dotcom Customer Entitlement Claims received a 6% distribution, raising their cumulative recovery to 78%. Class 5B U.S. Customer Entitlement Claims secured a 40% payout, bringing their total to 95%. General unsecured claims (Class 6A) and digital asset loan claims (Class 6B) each received 24%, lifting their cumulative distributions to 85%. Class 7 Convenience Claims, which include retail users, received 120% of their allowed claims, exceeding face value by including interest accrued since November 2022 FTX to Pay Out Additional $1.6 Billion to Creditors in Third Distribution^[3].

The Recovery Trust’s ability to fund these distributions stems from over $15 billion in recovered assets, including proceeds from the liquidation of Sam Bankman-Fried’s stakes in Anthropic and Robinhood, as well as token holdings like SOL and SUI. These efforts have enabled the estate to achieve projected full recovery for unsecured lenders and digital asset loan claimants . The total value of assets recovered and distributed to date exceeds $16 billion, reflecting the scale of the bankruptcy estate’s recovery operations .

Creditors must complete specific steps to qualify for subsequent distributions. These include logging into the FTX Customer Portal, submitting tax forms, and selecting a distribution service provider. Transferred claims will only be paid to the transferee holder listed on the official claims register. The Trust emphasized that future record and payment dates will be announced, with distributions contingent on compliance with procedural requirements FTX Recovery Trust to Distribute Approximately $1.6 Billion to Creditors in Third Distribution^[1].

Legal and financial advisors supporting the Recovery Trust include Sullivan & Cromwell LLP (legal counsel), Alvarez & Marsal North America (financial advisor), and Perella Weinberg Partners LP (investment banker). The Trust also reiterated warnings against phishing scams, advising creditors to avoid unauthorized channels and verify communications through official portals .

The third distribution underscores ongoing progress in returning value to FTX’s customer base, which constitutes approximately 98% of creditors. While some critics argue that fiat payouts fail to account for the post-2022 market appreciation of cryptocurrencies, the plan’s structure prioritizes liquidity and expediency in resolving claims. The Trust remains focused on finalizing remaining distributions, with subsequent phases expected to address high-value and institutional claims .