Recovery Trust Distributes $1.6B to FTX Creditors in Third Tranche

FTX Trading Ltd. and the FTX Recovery Trust have confirmed the distribution of approximately $1.6 billion to creditors on September 30, 2025, marking the third installment under the Chapter 11 Plan of ReorganizationFTX Recovery Trust to Distribute Approximately $1.6 Billion to Creditors in Third Distribution on September 30, 2025^[1]. The payout will be processed through BitGo, Kraken, or Payoneer, with eligible creditors expected to receive funds within one to three business days of the distribution dateFTX to Distribute $1.6B to Creditors by End of September^[2]. This follows prior distributions that have returned over $6 billion to claimants since FTX’s 2022 collapseBankrupt Exchange FTX Set to Repay $1.6B to Creditors Starting …^[3].

The distribution prioritizes senior claim classes under the “waterfall” structure outlined in the reorganization plan. Class 5A Dotcom Customer Entitlement Claims will receive an incremental 6% distribution, bringing cumulative recovery to 78%. U.S. Customer Entitlement Claims (Class 5B) will reach 95% total recovery with a 40% third payout. General Unsecured Claims and Digital Asset Loan Claims (Classes 6A and 6B) will each receive 24%, raising cumulative distributions to 85%. Convenience Claims (Class 7) will be fully repaid at 120%, exceeding their original claim valueFTX Recovery Trust to Distribute Approximately $1.6 Billion to Creditors in Third Distribution on September 30, 2025^[1].

Eligible creditors must complete pre-distribution requirements, including Know Your Customer (KYC) verification, submission of tax forms, and onboarding with a designated service providerFTX Recovery Trust to Distribute Approximately $1.6 Billion to Creditors in Third Distribution on September 30, 2025^[1]. Transferred claims will only be paid to the transferee holder listed in the official claims registerFTX Recovery Trust to Distribute Approximately $1.6 Billion to Creditors in Third Distribution on September 30, 2025^[1]. Phishing risks remain a concern, with FTX urging users to avoid fraudulent portals and communicationsFTX Recovery Trust to Distribute Approximately $1.6 Billion to Creditors in Third Distribution on September 30, 2025^[1].

The distribution is part of a broader effort to liquidate FTX’s assets and return funds to victims of the 2022 bankruptcy. The Recovery Trust, advised by Sullivan & Cromwell, Alvarez & Marsal, and other firms, has pursued litigation and asset recovery to support the processFTX Recovery Trust to Distribute Approximately $1.6 Billion to Creditors in Third Distribution on September 30, 2025^[1]. Future distributions will depend on additional funds or claim resolutions, with subsequent record dates to be announcedFTX Recovery Trust to Distribute Approximately $1.6 Billion to Creditors in Third Distribution on September 30, 2025^[1].

The third payout highlights the structured approach to creditor repayment, with senior classes receiving higher recovery rates before lower-tier claims. Class 7 Convenience Claims, which include certain legal and administrative expenses, have already been overpaid, reflecting the trust’s focus on prioritizing customer and investor claimsFTX Recovery Trust to Distribute Approximately $1.6 Billion to Creditors in Third Distribution on September 30, 2025^[1].

FTX’s founder, Sam Bankman-Fried, faces a 25-year prison sentence after being convicted of fraud and conspiracy related to the collapseBankrupt Exchange FTX Set to Repay $1.6B to Creditors Starting …^[3]. The ongoing legal process, overseen by the U.S. Bankruptcy Court in Delaware, remains a focal point for creditors and regulators monitoring the distribution timelineBankrupt Exchange FTX Set to Repay $1.6B to Creditors Starting …^[3].