The FTX Recovery Trust confirmed on Friday that it will distribute $1.6 billion to creditors at the end of this month. This marks the third payout since the exchange collapsed in November 2022. Four creditor groups will receive repayments on September 30. The amounts will cover between 78% and 120% of the value of each group’s original holdings on FTX when the exchange shut down. The variation depends on the type of claims filed. The distributions form part of the estate’s structured recovery plan. Payments will be processed through Bitgo, Kraken, and Payoneer. Earlier this year, FTX creditors received more than $5 billion in the second wave of repayments. The Trust began executing its distribution strategy in 2024, under the direction of John J. Ray III, who is managing asset recovery efforts. FTX collapsed in 2022 after its founder, Sam Bankman-Fried, and key associates misused customer deposits to cover losses at Alameda Research, the firm’s affiliated hedge fund. The failure left billions missing and triggered one of the largest fraud cases in U.S. history. Bankman-Fried was later convicted and is now serving a 25-year prison sentence . Several former executives, including Gary Wang, Caroline Ellison, and Nishad Singh, testified against him. The September 30 payouts continue the process of repaying former FTX customers, with the Trust expected to make further distributions as more assets are recovered.
