- FTX Recovery Trust will distribute $1.6B on Sept. 30, pushing some customer recoveries as high as 95%.
- Creditors must complete KYC, tax forms, and select a payout option (BitGo, Kraken, or Payoneer) before receiving funds.
- The structured plan has already returned $5B in two previous rounds, with smaller creditors receiving up to 120% payouts.
FTX’s long and messy bankruptcy saga is moving forward again. The FTX Recovery Trust confirmed on Sept. 19 that creditors will receive another $1.6 billion payout on Sept. 30, marking the third major distribution since the exchange’s collapse in 2022. For some customer classes, total recovery rates are now closing in on 95%—a level once thought nearly impossible in the aftermath of Sam Bankman-Fried’s empire implosion.
Verification Steps for Creditors
To qualify for payments, creditors must complete several verification steps through the FTX Customer Portal. This includes KYC verification, tax form submission, and choosing a payment option from BitGo, Kraken, or Payoneer. Funds typically land within one to three business days after approval. Importantly, the Recovery Trust emphasized that no wallet connections are required, clearing up fears of phishing scams or fraud during the reimbursement process.
Waterfall Priorities and Payout Structure
The reorganization plan allocates different percentages depending on creditor class. Dotcom customer claims will receive an incremental 6%, pushing their total recovery to 78%. U.S. customer entitlement claims, meanwhile, hit a massive 95% recovery rate after receiving 40% in this round. General unsecured claims and digital asset loan claims each secure a 24% payout, bringing their total recoveries to around 85%.
Previous Distributions and Recovery Timeline
This September payout follows two earlier rounds totaling $5 billion in repayments. The first distribution began in February 2025, establishing the recovery structure, while the second occurred in May, covering creditors with claims of $50,000 or less and including 9% interest accrued since the bankruptcy filing. Smaller creditors categorized under the “convenience class” are set to receive 120% payouts, representing full recovery plus extra compensation.
Final Thoughts
With $1.6 billion now flowing back to creditors, the FTX bankruptcy case continues to deliver progress in one of crypto’s largest-ever collapses. While the journey is far from over, recovery percentages that once seemed like a dream are now edging close to reality for thousands of affected users.
