Back
FTX Recovery Trust to Distribute $1.6 Billion to Creditors in Third Payout

FTX Recovery Trust to Distribute $1.6 Billion to Creditors in Third Payout

FTX will distribute an additional $1.6 billion to creditors as part of its bankruptcy proceedings, with funds expected to be processed via BitGo, Kraken, or Payoneer by early October 2025.

Fact Check
Multiple sources, including a press release from the FTX Recovery Trust, explicitly state that an approximate $1.6 billion distribution to creditors is planned, and that this will be the 'Third Distribution' in the bankruptcy proceedings.
    Reference: 1
Summary

FTX Recovery Trust will begin distributing $1.6 billion to creditors on September 30, 2025, as part of its third bankruptcy estate payout. The funds will be processed through BitGo, Kraken, or Payoneer and are expected to be distributed within 1–3 business days. This payment follows the ongoing bankruptcy plan, which aims to return over $15 billion in recovered assets by October 2024. Previous payouts aimed to return about 120% of users’ November 2022 balances, though some creditors have expressed dissatisfaction over the gap between cash distributions and the current market value of their crypto assets.

Terms & Concepts
  • FTX Recovery Trust: An entity established to manage the recovery and distribution of assets to creditors following the collapse of cryptocurrency exchange FTX.
  • Creditor Payout: A payment made to individuals or entities owed money, typically as part of a bankruptcy or recovery process.
  • BitGo: A digital asset trust and security company providing institutional-grade cryptocurrency custody solutions.