FTX's $1.6B Payout Sparks Valuation Dispute as Creditors Seek Fairer Crypto Pricing

FTX Trading Ltd. and the FTX Recovery Trust announced on September 19, 2025, that they will initiate the third distribution of $1.6 billion to creditors on September 30, 2025, as part of the Chapter 11 Plan of ReorganizationBankrupt Exchange FTX Set to Repay $1.6B to Creditors Starting …^[1]. This payout follows two prior distributions totaling over $6 billion returned to creditors since the exchange’s collapse in November 2022. Funds will be distributed through BitGo, Kraken, or Payoneer, with eligible creditors expected to receive payments within one to three business days of the distribution dateFTX Recovery Trust to Distribute Approximately $1.6 Billion to ...^[2]. The distribution requires creditors to complete Know Your Customer (KYC) verification, submit tax forms, and onboard with one of the designated service providersFTX Recovery Trust to distribute ~$1.6B in September payout^[3].

The distribution prioritizes claims under the "waterfall" structure outlined in the reorganization plan. U.S. Customer Entitlement Claims (Class 5B) will receive a 40% payout in this round, raising their cumulative recovery to 95%. Dotcom Customer Entitlement Claims (Class 5A) will get an additional 6%, bringing their total to 78%. General Unsecured Claims (Class 6A) and Digital Asset Loan Claims (Class 6B) will each receive 24%, increasing their cumulative recoveries to 85%. Convenience Claims (Class 7) will be paid at 120%, exceeding the face value of outstanding obligationsFTX to Distribute $1.6B to Creditors by End of September^[4].

The FTX Recovery Trust, overseen by legal counsel Sullivan & Cromwell and financial advisors Alvarez & Marsal, has been liquidating assets and pursuing litigation to return funds to affected users. Sam Bankman-Fried, the exchange’s founder, is serving a 25-year prison sentence after being convicted of fraud and conspiracy in 2023FTX Recovery Trust to Distribute Approximately $1.6 Billion to ...^[5]. The third payout underscores the ongoing efforts to resolve the bankruptcy estate, with future distributions contingent on additional asset recoveries or claim processingFTX to start paying out creditors Sept. 30 after court …^[6].

While the distribution has been framed as a positive step for creditors, some have expressed frustration over the valuation methodology. Repayments are calculated based on crypto asset prices in November 2022, when Bitcoin traded between $16,000 and $20,000, rather than current market values (around $120,000 as of September 2025). Critics argue this approach undercompensates creditors for gains realized in the subsequent market recoveryFTX Announces September 30 Date for Next $1.9 …^[7]. However, the bankruptcy court has upheld the original valuation model, citing legal consistencyFTX Creditor Payouts 2025: Court Filing Seeks to Freeze^[8].

The announcement has also sparked mixed reactions in the broader crypto market. While some analysts suggest the $1.6 billion injection of liquidity could provide a short-term boost to asset prices, the market has remained sideways in recent weeks despite a Federal Reserve rate cutCrypto Market Eyes Upside as FTX Set to Repay $1.6B to …^[9]. Additionally, a separate court filing in July 2025 sought to freeze 5% of claims in 49 jurisdictions, including China, due to regulatory uncertainties, though this issue is distinct from the September payoutFTX to begin $1.9B creditor payout on Sept. 30 - crypto.news^[10].