FTX’s bankruptcy estate is set to release $1.6 billion of funds to creditors at the end of the month, marking the third major payout following the crypto exchange’s implosion nearly three years ago.
The FTX Recovery Trust, which oversees the bankruptcy process, announced on Friday that payments will begin on September 30 for creditors who have completed verification steps on the FTX claims portal. Funds will be routed through service providers BitGo, Kraken or Payoneer and are expected to land in accounts within three business days.
U.S. customer claims will receive 40% in the latest round, bringing their total recovery so far to 95%, the press release said. “Dotcom” customers, users of the exchange’s international arm, will see an additional 6% payout, for 78% in cumulative distributions. General unsecured and digital asset loan claims are set for a 24% payout, raising recoveries to 85%. Convenience claims will be paid out at 120%, exceeding the face value of what was owed.
The September distribution follows earlier rounds that has returned over $6 billions to creditors, part of a process aimed at recovering assets to users of the once-prominent crypto exchange, which collapsed in November 2022 pushing the crypto industry into a deep bear market. Sam Bankman-Fried, the founder and CEO of the exchange, is currently serving a 25-year sentence after he was convicted of seven counts of fraud and conspiracy.
