FTX Recovery Trust to distribute ~$1.6B in September payout

FTX creditors will receive a third round of bankruptcy distributions on September 30, with payouts reaching up to 120%

by Blockworks /
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FTX Recovery Trust will distribute approximately $1.6 billion to creditors on September 30, marking the third payout since the exchange collapsed into bankruptcy in November 2022.

The distribution follows the Chapter 11 Plan of Reorganization approved by the US Bankruptcy Court in Delaware and will reach creditors who have completed required onboarding steps through designated providers BitGo, Kraken, or Payoneer. Funds are expected to arrive within three business days of the payout date, according to FTX court filings.

The breakdown allocates different recovery percentages by claim class: dotcom customer claims will receive an incremental 6% (bringing cumulative recovery to 78%), U.S. customer claims 40% (95% cumulative), general unsecured and digital asset loan claims 24% (85% cumulative), and convenience claims 120%. Distributions follow a “waterfall” priority structure, meaning senior classes recover before lower-ranked claims.

FTX collapsed in late 2022 following revelations of misused customer deposits, triggering one of the largest bankruptcies in crypto history. Since then, the Recovery Trust, advised by Sullivan & Cromwell, Alvarez & Marsal, Perella Weinberg, Quinn Emanuel, and Landis Rath & Cobb has been liquidating assets and pursuing litigation to return funds to customers. Previous rounds of distributions in 2024 and 2025 returned billions to creditors.

Future distribution dates will be announced once additional funds are recovered or claims processed.

This is a developing story.

This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.

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