FTX Adds Payoneer for Creditor Payouts in Bankruptcy Plan

FTX has expanded its list of approved distributors for creditor payouts by adding global fintech firm Payoneer. This addition was confirmed by the FTX Recovery Trust and FTX Digital Markets on Tuesday. Payoneer will now serve as the third official distributor for FTX and the second for FTX Digital Markets, handling payments dated after May 30, 2025. This move is part of FTX's ongoing efforts to enhance payment accessibility as it proceeds with its bankruptcy repayment plan.

The broader repayment effort, under the Chapter 11 reorganization, aims to return between $14.7 billion and $16.5 billion to former customers. The second major distribution, totaling over $5 billion, began at the end of May. Despite Payoneer’s extensive reach across 93 jurisdictions, some users have expressed frustration on social media, noting that their countries are still excluded from the list of eligible payout regions. Additionally, there has been criticism regarding FTX’s valuation methodology, which bases payouts on crypto prices at the time of the exchange’s collapse in November 2022.

On May 30, the FTX Trust initiated the distribution of $5 billion to eligible creditors who had completed pre-distribution requirements. This distribution targets both the Convenience and Non-Convenience Classes. Dotcom Customer Entitlement Claims are set to receive a 72% distribution, while US Customer Entitlement Claims will see a 54% payout. Convenience Claims will receive a full 120% reimbursement, and General Unsecured Claims and Digital Asset Loan Claims are scheduled for a 61% distribution. These reimbursements are being closely monitored by crypto investors, as large liquidity injections from these payouts could impact digital asset markets. Analysts have warned that if recipients choose to offload or swap their recovered funds on retail exchanges, it could introduce short-term price volatility.

This disbursement marks the second major payment since FTX’s collapse. The first round of payments, totaling $1.2 billion, was distributed on February 18 to claimants with less than $50,000 in approved claims. The addition of Payoneer as a distributor is expected to streamline the payout process and provide more options for creditors, potentially reducing the administrative burden and expediting the distribution of funds. This development is part of FTX's ongoing efforts to address the financial fallout from its collapse and restore confidence in the cryptocurrency market.