FTX to Distribute $1.6 Billion to Creditors in Third Compensation Wave

The cryptocurrency exchange FTX has announced its third compensation wave for creditors, set to distribute approximately $1.6 billion. This significant development is scheduled to commence on September 30, 2025. The distribution aligns with FTX’s restructuring plan under Chapter 11 bankruptcy proceedings.

Payout Process and Partners

According to the announcement by FTX and FTX Recovery Trust, the funds will be disbursed through selected partners BitGo, Kraken, and Payoneer. Creditors whose claims fall under the Convenience and Non-Convenience classes will receive their payments once all prior procedures are completed successfully.
FTX assures that beneficiaries can expect their funds from these providers within one to three business days following the commencement date.

Compensation Breakdown by Claim Class

In this compensation wave:
– Claim class 5A (Dotcom Customer Entitlement Claims) will see an additional distribution of 6%, totaling a cumulative compensation of 78%.
– Claim class 5B (U.S. Customer Entitlement Claims) will receive an additional payout reaching a total of 95%.
– Classes 6A (General Unsecured Claims) and 6B (Digital Asset Loan Claims) are allocated an additional distribution of 24%, coming up to a total of 85%.
– Class 7 (Convenience Claims) is set for a full payout at 120%.
To qualify for these distributions, creditors must undergo KYC verification processes and submit necessary tax documentation while registering with one of the designated distribution providers.

Jurisdictional Limitations

Despite this promising step forward for many involved parties, some regions face exclusions due to local regulatory bans on crypto assets or restrictions imposed on partner platforms. Notably, Ukraine is among the jurisdictions unable to receive compensations as per recent disclosures.

Ongoing Legal Challenges

Amid these developments, ongoing legal disputes persist. In August, FTX investors filed a lawsuit against California-based law firm Fenwick & West. The allegations claim substantial assistance in facilitating fraud within FTX operations. Plaintiffs argue that legal professionals were deeply embedded in nearly every operational aspect and assisted in devising schemes detrimental to client interests.
This article underscores pivotal movements in the ongoing saga surrounding FTX’s financial recovery strategy amidst complex legal landscapes impacting cryptocurrency markets globally.
By keeping updated on such developments and understanding broader implications within crypto finance ecosystems can provide valuable insights into potential shifts affecting market dynamics worldwide.