FTX Recovery Trust Announces Third Creditor Distribution Worth $1.6 Billion

The FTX Recovery Trust announced on 19 September 2025 its third major distribution, returning approximately $1.6 billion to affected creditors starting on 30 September. The payout forms part of the ongoing Chapter 11 bankruptcy proceedings following the collapse of the FTX crypto exchange in November 2022, with funds to be routed through service providers BitGo, Kraken, and Payoneer within three business days.

The distribution plan differentiates among several creditor categories: U.S. customers will receive 40% of their outstanding claims in this round, bringing their cumulative recovery to 95%, while international "dotcom" customers will receive an additional 6%, raising their total distributions to 78%. General unsecured and digital asset loan claims are set for a 24% payout, lifting overall recoveries to 85%, and the convenience class, comprising smaller creditors and retail traders, will receive 120% of their claim value, exceeding what they originally lost. According to Coinfomania, approximately $1.9 billion will be distributed from the disputed claims reserve after a Delaware court ruling reduced the reserve from $6.5 billion to $4.3 billion, unlocking an additional $1.9 billion for immediate use. FTX founder Sam Bankman-Fried is currently serving a 25-year prison sentence after being convicted on seven counts of fraud and conspiracy.

Following this third round, total FTX creditor repayments will surpass $8 billion, with the bankruptcy estate managing up to $16.5 billion in assets and projections pointing towards full creditor satisfaction by late 2026. The earlier distributions of $1.2 billion in February and $5 billion in May caused minimal market volatility, as the majority of smaller creditors received payouts in fiat currency rather than cryptocurrency.

Sources:

1. https://cryptopotato.com/ftx-recovery-trust-announces-third-1-6b-creditor-distribution/
2. https://www.coindesk.com/business/2025/09/19/bankrupt-exchange-ftx-set-to-repay-usd1-6b-to-creditors-starting-on-sep-30
3. https://www.crowdfundinsider.com/2025/09/252005-bankrupt-crypto-exchange-ftx-set-to-pay-out-1-6b-to-creditors-in-latest-distribution/
4. https://coinfomania.com/ftx-sets-september-30-for-1-9b-creditor-payouts-via-kraken/