FTX Recovery Trust to Disburse $1.6 Billion to Creditors in September Payout

The FTX Recovery Trust, the organization tasked with managing repayments from the collapsed crypto exchange, is preparing its third major payout to creditors—this time totaling approximately $1.6 billion.

The disbursement is scheduled for September 30, 2025, with funds expected to land in creditors’ accounts within three business days of release.

This upcoming tranche follows two earlier rounds: a $1.2 billion distribution in February and a substantial $5 billion payout in May. Together, they form part of the $16.5 billion pool earmarked for creditors and former customers affected by FTX’s dramatic 2022 implosion.

The September distribution will see U.S. Customer Entitlement Claims receive 40%, pushing their cumulative recovery rate to an impressive 95%. Dotcom Customer Claims tied to FTX’s international arm will see a modest 6% increase, bringing their total recovery to 78%.

Meanwhile, General Unsecured Claims and Digital Asset Loan Claims are set for a 24% payout, raising their overall recovery to 85%. Convenience claims stand out in this round, receiving 120% of the face value owed—an incentive embedded in FTX’s bankruptcy restructuring plan.

To qualify for the payout, creditors must complete onboarding through FTX’s Customer Portal, including Know Your Customer (KYC) verification and tax-related documentation. Payments will be handled by service providers BitGo, Kraken, or Payoneer, with processing timelines expected to range from one to three business days.

FTX’s collapse in late 2022 followed revelations of customer funds being funneled into risky bets via Alameda Research, shaking confidence in the broader crypto market and worsening an already-deepening bear trend.

Former CEO Sam Bankman-Fried was convicted in November 2023 on multiple charges—including wire fraud, securities fraud, and money laundering conspiracy—and sentenced to 25 years in prison the following March.

His legal team has announced an appeal, scheduled for November 2025, arguing that FTX was never truly insolvent and that he was denied a fair trial.

Despite the Recovery Trust’s progress, some creditors remain frustrated by repayments being calculated using late-2022 crypto valuations, a move that they argue significantly undervalues their holdings amid the 2025 bull market.

Still, with billions already returned, the process stands as one of the largest and most closely watched bankruptcies in crypto history. Future distribution schedules will depend on additional funds generated through asset sales, litigation victories, and ongoing recoveries.

For now, both investors and the broader market are keeping a close eye on each payout—not just as restitution for victims, but as a bellwether for how crypto governance and custody might evolve in a post-FTX world.