Structured Recovery Takes Shape: FTX Allocates $1.6B to Creditors

FTX Trading Ltd. and the FTX Recovery Trust announced on September 19, 2025, the commencement of the third distribution under the Chapter 11 Plan of Reorganization, allocating approximately $1.6 billion to eligible creditors. The payout, scheduled for September 30, 2025, will prioritize claims processed through BitGo, Kraken, or Payoneer, with funds expected to reach accounts within 1–3 business days. This follows prior distributions totaling over $6 billion since the exchange’s collapse in November 2022, marking a critical phase in the recovery processFTX Recovery Trust to Distribute Approximately $1.6 Billion to Creditors in Third Distribution on September 30, 2025^[1].

The distribution adheres to a structured "waterfall" prioritization. Class 5A Dotcom Customer Entitlement Claims will receive an incremental 6% (78% cumulative), Class 5B U.S. Customer Entitlement Claims 40% (95% cumulative), and Classes 6A/6B General Unsecured and Digital Asset Loan Claims 24% (85% cumulative). Notably, Class 7 Convenience Claims will see a 120% payout, exceeding original claim valuesFTX to Distribute $1.6B to Creditors by End of September^[2]. These percentages reflect progress toward full recovery for most creditor groups, with U.S. customer claims nearing completionFTX Recovery Trust to distribute ~$1.6B in September payout^[3].

Eligibility requires creditors to complete Know Your Customer (KYC) verification, submit tax forms, and onboard with a designated distribution service provider. Transferred claims will only be distributed to the transferee holder reflected in the official claims registerFTX Announces $1.6 Billion Third Distribution to Creditors This^[4]. The process underscores the legal framework’s emphasis on compliance, with the FTX Customer Portal (https://claims.ftx.com) serving as the central hub for updatesFTX News: Bankrupt Crypto Exchange to Repay $1.6B on Sep. 30 …^[5].

The $1.6 billion payout is part of a broader asset liquidation strategy, leveraging over $15 billion in recovered assets—including cash, token sales, and litigation proceeds—to repay creditors. The Recovery Trust, advised by Sullivan & Cromwell and Alvarez & Marsal, continues liquidating remaining assets, with future distributions contingent on claims processing and asset recoveryEverything You Need to Know About FTX's $16B Claims Payout in …^[6]. Analysts suggest the influx of liquidity could temporarily impact crypto markets, though phased sales and hedging mechanisms aim to mitigate volatilityFTX’s $3.4B crypto liquidation: What it means for …^[7].

Regulatory scrutiny remains intense, with the U.S. Bankruptcy Court overseeing compliance. The court-approved plan balances creditor recovery with market stability, particularly for high-value tokens like Solana (SOL) and Bitcoin (BTC), whose large holdings are subject to controlled liquidation schedulesFTX Set to Inject $2B Into Crypto Market by September 2025^[8]. FTX’s reorganization also highlights evolving crypto regulations, as institutions increasingly prioritize transparency and accountability in post-bankruptcy scenarios.

Future steps include additional payouts as funds are recovered, with subsequent record dates to be announced. The distribution represents a pivotal step in restoring trust, though challenges persist for larger creditors, whose recovery rates vary between 43% and 129% depending on claim typeFTX Announces $1.6 Billion Third Distribution to Creditors This^[4].