FTX Recovery Trust Announces Additional $1.6B Distribution to Creditors - Major Milestone Reached

FTX creditors just scored another massive win—$1.6 billion hitting accounts as the exchange's recovery trust pushes forward with its repayment plan.

Breaking Down the Numbers

This latest distribution brings total creditor payouts to levels nobody predicted during the darkest days of the collapse. The trust's aggressive asset liquidation strategy—cashing out crypto holdings during bull markets—proves even bankruptcy proceedings can't escape crypto's volatility.

Market Implications

Fresh capital injections like this typically fuel further crypto market activity—former creditors suddenly becoming potential buyers again. Watch for increased trading volumes as these funds hit the ecosystem.

Trust administrators continue navigating legal complexities while maximizing returns—something traditional finance firms might learn from if they could stop overcomplicating basic asset management.

Final distributions expected to exceed initial claims—turning one of crypto's biggest disasters into an unexpected recovery story.

FTX Recovery Trust Details Payout Breakdown in $1.6B Distribution

The round includes varied percentages depending on the type of claim. U.S. Customer Entitlement Claims will receive 40%, General Unsecured and Digital Asset Loan Claims get 24%, and Dotcom Customer Claims are set for a 6% reimbursement.

Convenience claims, meanwhile, will receive a 120% payout in this cycle.

The trust has already disbursed $6.2 billion across two prior rounds, $1.2 billion in February and $5 billion in May—bringing total recoveries to nearly half of the $16.5 billion earmarked for victims of the exchange’s collapse.

FTX’s downfall in November 2022 marked one of the most dramatic failures in crypto history, triggering a chain reaction that intensified the ongoing market downturn.

The exchange’s former CEO, Sam Bankman-Fried, was convicted on seven counts, including fraud and money laundering. In March 2024, he was sentenced to 25 years in prison.

BREAKING:

FTX TO DISTRIBUTE $1.6 BILLION TO CREDITORS ON SEPTEMBER 30.

MORE LIQUIDITY COMINGpic.twitter.com/ofNklEObY3

While the criminal case closed one chapter, legal battles continue. Bankman-Fried’s legal team is expected to appeal his conviction this November, arguing procedural flaws and asserting that FTX was never insolvent.

Creditors and market participants remain watchful of the trust’s activities, as large inflows of recovered funds could affect market sentiment and liquidity in the short term.

With over $16 billion on the table, how the rest is returned could shape both the reputations of key players and the future of crypto investor protections.

3AC Targets FTX Execs Over $1.5B Liquidation in New Subpoenas

The liquidators of collapsed hedge fund Three Arrows Capital (3AC) have subpoenaed former FTX CEO Sam Bankman-Fried, ex-Alameda CEO Caroline Ellison, and FTX executive Ryne Salame.

The MOVE follows allegations that over $1.5 billion in 3AC assets were liquidated unlawfully by FTX-linked entities.

Bankman-Fried’s deposition is scheduled for October 14, 2025, at Terminal Island prison, where he is currently serving time.

3AC co-founder Zhu Su claims Bankman-Fried executed unauthorized liquidations that contributed to 3AC’s downfall.

He also accuses Salame of using insider knowledge to front-run trades and pocket over $1 billion in profits before FTX’s collapse.

Ellison is expected to be questioned regarding Alameda’s trading strategies that may have played a role in the alleged misconduct.

As reported, FTX and Alameda have also withdrawn approximately 192,000 solana (SOL) tokens, worth around $44.9 million, from staking.

The move follows a consistent pattern observed over the past year, with the estate redeeming Solana assets on a near-monthly basis.

Since November 2023, FTX and Alameda have unstaked and transferred nearly 9 million SOL, valued at $1.2 billion, averaging $134 per token.