In a significant development for those affected by the FTX collapse, the bankruptcy estate of the once-prominent cryptocurrency exchange is poised to distribute $1.6 billion to creditors at the end of the month. This marks the third major payout following the firm’s dramatic decline nearly three years ago.
The FTX Recovery Trust, responsible for managing the bankruptcy process, announced on Friday that payments will commence on September 30. Creditors who have successfully completed the verification steps on the FTX claims portal will be eligible for these funds. Disbursements will be facilitated through service providers such as BitGo, Kraken, or Payoneer, with expected arrivals in accounts within three business days.
In this latest distribution, U.S. customer claims are set to receive a 40% payout. This latest round brings their cumulative recoveries to an impressive 95%. Additionally, customers of the exchange’s international arm, commonly referred to as “Dotcom” customers, will enjoy a further 6% payout, resulting in a total recovery rate of 78%. Claims categorised as general unsecured and digital asset loans will see a 24% payout, accumulating to an 85% recovery rate. Notably, convenience claims will be paid out at 120%, exceeding the original amounts owed.
This September distribution follows previous payouts that have returned over $6 billion to creditors, as part of ongoing efforts to reclaim lost assets for users of FTX. The crypto exchange’s collapse in November 2022 sent shockwaves through the industry, leading into a prolonged bearish market.
The founder and former CEO of FTX, Sam Bankman-Fried, is currently serving a 25-year prison sentence after being convicted on seven counts of fraud and conspiracy, further underscoring the tumultuous legacy of the exchange and the impact of its downfall on the broader crypto landscape.
