FTX's Court-Backed Plan Distributes ~$1.6B in Third Creditor Payout

FTX Trading Ltd. and the FTX Recovery Trust announced on September 19, 2025, that they will distribute approximately $1.6 billion to creditors on September 30, 2025, marking the third installment under the Chapter 11 Plan of Reorganization. This payout follows earlier distributions totaling over $6 billion returned to creditors since the collapse of the crypto exchange in November 2022. The funds will be disbursed through Bitgo, Kraken, or Payoneer, with eligible creditors expected to receive payments within one to three business days of the distribution date.

The distribution prioritizes different claim classes based on the waterfall structure outlined in the reorganization plan. Class 5A Dotcom Customer Entitlement Claims will receive a 6% incremental payout (78% cumulative distribution to date), while Class 5B U.S. Customer Entitlement Claims will see a 40% payout (95% cumulative distribution). General Unsecured Claims (Class 6A) and Digital Asset Loan Claims (Class 6B) each receive a 24% distribution (85% cumulative), and Convenience Claims (Class 7) will be paid at 120% of their face value. These allocations reflect the ongoing efforts to systematically settle claims while adhering to court-approved priorities.

Creditors must complete pre-distribution requirements to qualify for the payout, including Know Your Customer (KYC) verification, submission of tax forms, and selection of a distribution service provider via the FTX Customer Portal. Transferred claims will be distributed to the transferee holder only if the claim is finalized on the official register. The FTX Recovery Trust emphasized that opting for a distribution service provider relinquishes the right to direct cash payments from FTX.

The third distribution follows a broader restructuring timeline that has returned over $6 billion to creditors since the 2022 collapse. This process has been supported by legal and financial advisors, including Sullivan & Cromwell LLP and Alvarez & Marsal North America, LLC, to ensure compliance with court mandates. The FTX Recovery Trust also reiterated warnings about phishing attempts, advising creditors to remain cautious of fraudulent emails or websites mimicking the FTX Customer Portal.

Contextualizing the distribution, FTX’s bankruptcy proceedings have faced significant legal and operational challenges since the exchange’s implosion, which triggered a global crypto market downturn. Sam Bankman-Fried, the founder, is currently serving a 25-year prison sentence after being convicted of fraud and conspiracy. The ongoing disbursements aim to fulfill obligations to creditors while maintaining transparency, as outlined in court filings accessible via the FTX claims portal.

The September 30 distribution underscores the FTX Recovery Trust’s commitment to resolving claims through a structured process. Future payouts will depend on the resolution of remaining disputed claims and adherence to regulatory frameworks. For creditors in restricted jurisdictions, including China, Russia, and Ukraine, additional hurdles remain, with $470 million in claims currently ineligible for distribution.