FTX Creditors to Reap $1.6B Windfall in Third Payout Wave on September 30

Bankrupt exchange's creditors finally see light—and cash—at tunnel's end.

The Comeback No One Saw Coming

FTX's collapse sent shockwaves through crypto, but its creditors are about to get a serious payday. $1.6 billion hits wallets September 30—marking the third distribution round since the exchange imploded.

Where the Money's Flowing

Payouts cut through red tape, bypassing traditional bankruptcy delays. Creditors get direct deposits—no intermediaries, no excuses. The process mirrors crypto's ethos: fast, transparent, and ruthlessly efficient.

Why This Matters Beyond the Payout

This isn't just about reimbursements—it's a signal. Crypto's resilience shines even in failure. Markets absorb the news, recalibrating risk while eyeing the next domino. Traders watch, regulators note, and skeptics... well, they'll still find something to complain about.

Finance's Ironic Twist

Wall Street could learn a thing or two—here's a bankrupt crypto outfit moving billions faster than some banks process a wire transfer. Maybe traditional finance needs a blockchain upgrade.

Bottom line: Crypto's not just surviving—it's paying out. Literally.

Waterfall priorities

Payment amounts vary by creditor class under the reorganization plan’s waterfall priorities. Dotcom customer entitlement claims receive an incremental 6% distribution, reaching a cumulative recovery of 78%.

US customer entitlement claims obtain 40% payments, achieving 95% total recovery. General unsecured claims and digital asset loan claims each receive 24% distributions, bringing cumulative recovery to 85%.

The Recovery Trust emphasized that no wallet connections are required for eligibility verification or reimbursement processing. This clarification addresses potential confusion amid ongoing concerns about crypto fraud affecting bankruptcy proceedings.

Transferred claims face additional requirements, with distributions only processed for transferee holders reflected on the official claims register after a 21-day notice period without objections.

Recovery timeline and previous distributions

The September payout follows two previous distribution rounds totaling approximately $5 billion in creditor repayments.

The second distribution occurred on May 30, addressing creditors with claims valued at $50,000 or less while adding 9% annual interest accrued since the November 2022 bankruptcy filing. Initial distributions began on Feb. 18, establishing the recovery framework.

Convenience class creditors receive 120% distributions, representing full recovery plus additional compensation for smaller claims. The overpayment structure aims to expedite resolution for lower-value creditors while reducing administrative costs associated with extended proceedings.

FTX announced that subsequent record and payment dates will be announced as proceedings continue. The structured approach enables systematic distribution while maintaining adequate reserves for ongoing legal costs and administrative expenses.

The distribution represents continued progress in one of the crypto industry’s largest bankruptcy cases, following a collapse that sent shockwaves through the sector.