- Verified creditors will reportedly receive payments through BitGo, Kraken, or Payoneer, with funds expected to reach accounts within three business days.
- The latest distribution marks the third major payout since the exchange’s 2022 collapse.
Nearly three years after FTX’s dramatic collapse, the exchange is taking another major step toward repaying creditors. On September 30, the bankruptcy estate will distribute $1.6 billion, marking the third large payout since the 2022 implosion that rocked the crypto industry.
The FTX Recovery Trust, which manages the bankruptcy process, confirmed that verified creditors will start receiving payments through service providers BitGo, Kraken, or Payoneer. Funds are expected to reach accounts within three business days.
U.S. customer claims will receive 40% in the latest round, raising their total recovery to 95%. Users of FTX’s international “Dotcom” platform will see an additional 6%, bringing cumulative returns to 78%.
General unsecured and digital asset loan claims will receive 24%, increasing their recoveries to 85%. Convenience claims, notably, will be paid at 120%, exceeding the amount originally owed.
See Related: FTX Asks U.S. Court To Halt Creditor Payouts In 49 Countries, Including Russia And China
A Long Road To Compensation
This payout follows previous distributions that have already returned over $6 billion to creditors. The process reflects ongoing efforts to make victims whole after FTX’s November 2022 collapse, which sent shockwaves through the crypto market.
Sam Bankman-Fried, the exchange’s founder and former CEO, is serving a 25-year prison sentence following his conviction on seven counts of fraud and conspiracy. The September distribution represents another milestone in the effort to return funds to those affected by the exchange’s downfall.
A jury found Sam Bankman-Fried guilty of fraud and conspiracy, following a high-profile trial examining the collapse of his cryptocurrency exchange, FTX. Prosecutors showed that he and his executive team improperly diverted customer funds to themselves by mixing money with his hedge fund, Alameda Research, in what was described as an $11 billion fraud.
In March 2024, a judge sentenced Bankman-Fried to prison, and he was initially held at the Metropolitan Detention Center in Brooklyn.
