The FTX Recovery Trust, which handles repayments after the collapse of the crypto exchange, announced a third round of creditor distributions worth about $1.6 billion. The payout is scheduled for September 30, and creditors should see funds in their accounts within three business days. This distribution follows earlier payments made in February and May, bringing total repayments to over $7.8 billion. The trust has up to $16.5 billion set aside for customers and creditors.
The new distribution includes a 6% payout for Dotcom Customer Claims, a 40% payout for US Customer Entitlement Claims, and a 24% payout for General Unsecured Claims and Digital Asset Loan Claims. Convenience Claims, designed for smaller cases, will receive a 120% reimbursement. These percentages aim to give creditors consistent recovery levels as the trust works through available assets.
FTX collapsed in November 2022, sending shockwaves through the crypto world and adding to the crypto bear market that had already begun earlier that year. At its height, FTX ranked among the largest digital asset exchanges in the world, and the sudden bankruptcy left millions of customers and investors uncertain about their funds. The ongoing reimbursements from the FTX Recovery Trust are closely watched because large payouts could affect liquidity and prices across the crypto market, including Bitcoin and Ethereum.
The collapse was tied to actions of the company’s founder, Sam Bankman-Fried, often referred to as SBF. In November 2023, a jury found him guilty on seven criminal charges, including wire fraud, securities fraud, commodities fraud, and money laundering conspiracy. In March 2024, Judge Lewis Kaplan sentenced him to 25 years in prison, calling his role in the exchange’s implosion a serious crime. Bankman-Fried’s attorneys plan to appeal the conviction this November, claiming the trial was unfair and arguing that FTX was never insolvent.
The case against Bankman-Fried continues to influence how regulators and traders view the safety of crypto exchanges. For creditors, the question remains how much more of the $16.5 billion in assets the FTX Recovery Trust will be able to distribute and whether further tranches will follow the same schedule. With the September payout now set, customers and investors remain focused on how these distributions might ripple across the market and what it means for the long road of recovery after one of the most damaging collapses in the history of digital assets.
