FTX to Distribute Extra $1.6 Billion to Creditors in Third Payout

Defunct crypto exchange FTX will begin distributing an additional $1.6 billion to creditors on September 30, marking its third payout under Chapter 11 bankruptcy proceedings.

The distribution covers both retail traders in the convenience class and larger non-convenience claims. Retail users previously received refunds worth about 120% of their balances at the time of FTX’s November 2022 collapse, though many argue the cash payouts pale in comparison to the value their crypto would hold today.

So far, unsecured lenders tied to FTX and Alameda Research have recovered 85% of claims, with full repayment projected under the bankruptcy plan.

Backed by more than $15 billion in recovered assets, the estate will disburse funds via BitGo, Kraken, and Payoneer, arriving within one to three business days after release.

The latest payout, on May 30, covered claims of $50,000 or less, adding 9% annual interest since the November 2022 bankruptcy. Initial payments began on February 18.

Under the plan, convenience class creditors receive 120% of balances, designed to speed resolutions for small claims while reducing administrative costs. FTX said future record and payment dates will be announced as proceedings continue in what remains one of crypto’s largest bankruptcy cases.

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