FTX Creditors Score Payoneer Option for Faster Post-Bankruptcy Payouts

Bankruptcy just got a digital upgrade—FTX creditors now have Payoneer as a payout shortcut.

No more waiting for paper checks from the crypto graveyard. The collapsed exchange’s creditors can now opt for Payoneer’s digital transfer system, slicing through traditional banking delays like a hot wallet through butter.

Because nothing says ''financial recovery'' like outsourcing your bankruptcy payouts to a fintech middleman—ah, the irony of modern finance.

FTX Repayment Plan Targets $16.5B in Customer Payouts Under Chapter 11

The broader repayment effort, part of the Chapter 11 reorganization, is expected to return between $14.7 billion and $16.5 billion to former customers.

Despite Payoneer’s reach across 93 jurisdictions, some users have voiced frustration on social media, saying their countries are still excluded from the list of eligible payout regions.

Others remain critical of FTX’s valuation methodology, which calculates payouts based on crypto prices at the time of the exchange’s collapse in November 2022, when Bitcoin was worth just $17,583, compared to over $109,000 today.

(2/2) FTX also reminds customers to please remain aware of phishing emails that may look like they are from FTX and scam sites from channels that may appear to look like the FTX Customer Portal.

On May 30, the FTX Trust began distributing $5 billion to eligible creditors who completed pre-distribution requirements, targeting both the Convenience and Non-Convenience Classes.

Under the plan, Dotcom Customer Entitlement Claims are set to receive a 72% distribution, while US Customer Entitlement Claims will see a 54% payout.

Convenience Claims will receive a full 120% reimbursement. General Unsecured Claims and Digital Asset Loan Claims are scheduled for a 61% distribution.

The FTX reimbursements are being closely watched by crypto investors, as large liquidity injections from these payouts could impact digital asset markets.

Analysts warn that if recipients choose to offload or swap their recovered funds on retail exchanges, it could introduce short-term price volatility.

This was the second major disbursement since FTX’s collapse. The first round of payments, totaling $1.2 billion, was distributed on February 18 to claimants with less than $50,000 in approved claims.

Sam Bankman-Fried’s Release Date Set for 2044

FTX founder Sam Bankman-Fried is now projected to be released from federal prison on December 14, 2044, after serving less than 21 years of his 25-year sentence for fraud tied to the FTX collapse.

He was also fined over $11 billion. Federal records confirm that Bankman-Fried has been moved from New York to a transfer facility in Oklahoma following nearly two years behind bars.

The move comes after Bankman-Fried was reportedly placed in solitary confinement earlier this month for giving an unauthorized interview to Tucker Carlson.

His incarceration began in August 2023, after Judge Lewis Kaplan revoked his bail due to allegations of witness tampering involving leaked diary entries from former Alameda CEO Caroline Ellison, who was a key witness in the case.