FTX Recovery Plan Delivers $1.6 Billion in Third Wave of Payments

Key Highlights FTX to repay $1.6B in third wave of creditor payments this month Some customer classes reach up to 95% recovery rate Over 40 countries excluded from payouts due to restrictions FTX Creditors Set to Receive $1.6 Billion in Third Round of Payments Bankrupt crypto exchange FTX and the FTX Recovery Trust have confirmed the launch of a third wave of creditor payments totaling $1.6 ￰0￱ to the restructuring plan, payouts will begin on September 30, 2025, marking one of the most significant steps yet in the company’s Chapter 11 recovery ￰1￱ Creditors Will Receive Funds FTX announced that payments will be made to creditors with approved claims in both the Convenience and Non-Convenience classes, pending the completion of earlier ￰2￱ will be handled by partners including BitGo, Kraken, and Payoneer, with recipients expected to see funds in one to three business days after ￰3￱ breakdown of compensation for this round is as follows: Class 5A (Dotcom Customer Entitlement Claims) : additional 6%, bringing total recoveries to 78% Class 5B (US Customer Entitlement Claims) : 40%, reaching 95% overall Class 6A (General Unsecured Claims) : 24%, bringing recoveries to 85% Class 6B (Digital Asset Loan Claims) : 24%, also reaching 85% overall Class 7 (Convenience Claims) : 120% recovery To claim payouts, lenders must complete KYC verification , provide tax documentation, and register with one of the approved distribution ￰4￱ and Ongoing Legal Battles Not all creditors will be eligible for ￰5￱ July, one of FTX’s creditors, Sunil Kavuri, published a list of 49 jurisdictions where payouts are blocked due to local restrictions on crypto or partner ￰6￱ such as Ukraine are on the exclusion list.

meanwhile, FTX-related litigation ￰7￱ August, investors filed a lawsuit against California law firm Fenwick & West, accusing it of offering “substantial assistance” in FTX’s fraudulent activities and being deeply involved in operations that funneled client funds.