FTX Expands Payout Reach With Payoneer Partnership

FTX Recovery Trust and FTX Digital Markets (FTX DM) have announced a significant development in the dispersal process for customer funds following the collapse of the now-bankrupt cryptocurrency exchange FTX. Global financial technology company Payoneer has been enlisted to assist in the distribution of payments, operating as the third distributor for customers with payout dates beyond May 30, 2025. This integration signals a substantial broadening of FTX’s multibillion-dollar repayment plan, although some users have expressed disappointment on social media about their countries being excluded from this initiative.

With Payoneer joining Kraken and BitGo as the third official payment distributor for FTX, and the second for FTX DM, the service is specifically tailored for clients eligible for payments after May 30, 2025. Payoneer’s global presence will be crucial in this process, facilitating payments to former FTX clients in 93 different jurisdictions where its operations are ongoing. This extensive reach implies that more users will find it easier to access their funds compared to previous arrangements. However, the inclusion of Payoneer has not entirely satisfied all customers, as some users on social media platform X have voiced discontent that their countries remain out of the distribution scope despite Payoneer’s involvement.

FTX customers have also expressed dissatisfaction with the method used for calculating payments. Last month, FTX revealed that as part of the Chapter 11 restructuring plan, the second phase of payment distribution for former clients had commenced, with over $5 billion projected to be disbursed during this phase. The entire repayment plan covers an amount between $14.7 billion and $16.5 billion. However, the specific amount creditors receive depends on the nature of their claims and the valuation of assets at the time of their 2022 bankruptcy. The asset valuation methodology is a major point of contention, as many customers find it unjust that payments are being calculated based on the dollar value of their assets during the lower market conditions when the cryptocurrency exchange collapsed in 2022. For example, on the bankruptcy’s official date, November 11, 2022, Bitcoin was valued at only $17,583, a stark contrast to its current approximate value of $109,547. The enormous differential, around a 523% increase, dramatically highlights potential losses for customers. Consequently, users vehemently criticize payments being appraised at bottom-market prices rather than current market values.

This partnership between Payoneer and FTX is a strategic move that aims to expand FTX's payout reach, enabling users to receive their funds more efficiently and conveniently. Payoneer's extensive network and robust infrastructure will facilitate seamless transactions, allowing FTX users to withdraw their earnings directly to their Payoneer accounts. This development is expected to enhance the overall user experience by providing a more streamlined and accessible payout process. The integration of Payoneer with FTX's platform is a significant step forward in bridging the gap between traditional financial services and the burgeoning cryptocurrency market. By leveraging Payoneer's established payment solutions, FTX can offer its users a wider range of options for managing their funds. This partnership not only benefits individual users but also strengthens FTX's position in the competitive cryptocurrency exchange landscape. The ability to provide reliable and efficient payouts is crucial for attracting and retaining users, and this collaboration underscores FTX's commitment to delivering top-tier services.

The expansion of FTX's payout reach through Payoneer is particularly noteworthy given the growing demand for cryptocurrency services. As more individuals and businesses explore the potential of digital assets, the need for secure and efficient payment solutions becomes increasingly important. Payoneer's global presence and expertise in cross-border payments make it an ideal partner for FTX, enabling the exchange to cater to a diverse user base. This partnership is likely to foster greater adoption of cryptocurrencies by providing users with a trusted and convenient way to access their funds. Moreover, the collaboration between Payoneer and FTX highlights the evolving nature of the financial services industry. Traditional payment platforms are increasingly recognizing the importance of integrating with cryptocurrency exchanges to meet the changing needs of their customers. This trend reflects a broader shift towards digital transformation, where innovative technologies are reshaping the way financial transactions are conducted. By embracing this partnership, both Payoneer and FTX are positioning themselves at the forefront of this transformation, paving the way for future advancements in the financial services sector.