TLDR
- FTX will begin distributing an additional $1.6 billion to creditors starting September 30.
- The third payout will include payments to both retail and larger creditors.
- Retail creditors, known as the convenience class, will receive refunds based on their exchange balances.
- Unsecured lenders have already received 85% of their total claims and are projected to recover fully.
- FTX’s bankruptcy plan leverages over $15 billion in recovered assets, including cash and token sales.
FTX will begin distributing an additional $1.6 billion to creditors starting on September 30, 2025. The payout will be part of the exchange’s ongoing Chapter 11 reorganization plan. This marks the third distribution since FTX filed for bankruptcy in November 2022. The distribution will benefit both retail and larger creditors.
FTX to Pay Two Classes of Creditors
FTX will provide payments to two creditor classes: the convenience class and the non-convenience class. The convenience class typically refers to retail traders and smaller creditors. They account for up to 99% of the total creditor base, while the non-convenience class involves larger, more complex claims.
The convenience class will see payments based on their exchange balances at the time of bankruptcy. FTX’s earlier distributions paid out approximately 120% of these balances. Some creditors have expressed dissatisfaction, feeling the payouts fall short of the potential value their assets could have reached.
Unsecured Lenders Receive Significant Distributions
Unsecured lenders, including those with general unsecured claims and digital asset loan claims, have already received significant distributions. FTX stated that these lenders have received about 85% of their total claims. The company projects full recovery for these unsecured lenders under the bankruptcy plan.
FTX’s bankruptcy plan leverages over $15 billion in recovered assets. This includes cash reserves, clawback funds, and proceeds from asset sales, such as the sale of Bankman-Fried’s stake in Anthropic. The recovery also includes holdings of tokens like SOL and SUI, along with shares in Robinhood.
FTX’s creditor payout process will continue through service providers like Bitgo, Kraken, and Payoneer. Eligible creditors can expect to receive their funds within one to three business days after September 30. FTX’s payout schedule aims to provide liquidity to those affected by the exchange’s downfall.
