FTX To Begin Repaying $1.6B To Creditors Starting Sep 30

FTX, the defunct cryptocurrency exchange founded by Sam Bankman-Fried, will start a $1.6 billion distribution to verified creditors on September 30, marking its third payout under bankruptcy proceedings.

The payment will be disbursed to creditors within one to three business days via Bitgo, Kraken, or Payoneer, covering both so-called Convenience and Non-Convenience classes, an announcement said.

FTX will pay out $1.6B to creditors on September 30th.

Will they buy, or will they sell??? pic.twitter.com/F2bkBeTl35

— Kyle Chassé / DD🐸 (@kyle_chasse) September 19, 2025

Smaller victims with claims under $50,000 are set to recover 120% of their funds, while international customers’ cumulative recovery will climb to 78%.

The latest distribution underscores FTX’s progress in repaying creditors, with more than $15 billion recovered so far toward an estimated $16.5 billion liability.

Eligibility Depends On Pre-Distribution Compliance

Creditors are required to complete all pre-distribution steps to receive their payments. These include logging into the FTX Customer Portal, completing KYC, submitting tax forms, and choosing a service provider.

(2/3) Eligible creditors should expect to receive funds from their selected distribution service provider within 1 to 3 business days from September 30, 2025. Additional details are available in FTX’s press release here: https://t.co/dZsUL5Eegr

— FTX (@FTX_Official) September 19, 2025

Users must also ensure that their claims are recorded with no objections after the 21-day notice period. According to FTX, funds will only be paid to officially registered claim holders.

“For transferred claims, distributions will only be made to the transferee holder of an allowed claim that is processed and reflected on the official register of claims maintained by the Notice and Claims Agent as of future record dates, where the 21-day notice period has lapsed without objection,” the announcement reads.

The distributions for every FTX user will be calculated based on asset value at the time of the November 2022 bankruptcy filing. The court upheld this valuation despite the rise in crypto market prices since then.

Ahead of the upcoming third FTX distribution, creditors are being urged to remain vigilant against potential scams. There is also a risk that creditors may receive phishing emails, which could inflict further harm on individuals already facing financial problems. 

FTX imploded in November 2022, when customer panic triggered a wave of withdrawals that the exchange could not cover, forcing it, and sister firm Alameda Research, into bankruptcy, sending shockwaves across the crypto sector.

US prosecutors subsequently charged Bankman-Fried and other top executives with siphoning billions in customer funds. Bankman-Fried was convicted in 2023 and is now serving a 25-year prison sentence for orchestrating one of the largest financial frauds in US history.

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