FTX Recovery Trust to distribute ~$1.6B in September payout

FTX creditors will receive a third round of bankruptcy distributions on September 30, with payouts reaching up to 120%

by Blockworks /
article-image

New Africa/Shutterstock and Adobe modified by Blockworks

share

FTX Recovery Trust will distribute approximately $1.6 billion to creditors on September 30, marking the third payout since the exchange collapsed into bankruptcy in November 2022.

The distribution follows the Chapter 11 Plan of Reorganization approved by the US Bankruptcy Court in Delaware and will reach creditors who have completed required onboarding steps through designated providers BitGo, Kraken, or Payoneer. Funds are expected to arrive within three business days of the payout date, according to FTX court filings.

The breakdown allocates different recovery percentages by claim class: dotcom customer claims will receive an incremental 6% (bringing cumulative recovery to 78%), U.S. customer claims 40% (95% cumulative), general unsecured and digital asset loan claims 24% (85% cumulative), and convenience claims 120%. Distributions follow a “waterfall” priority structure, meaning senior classes recover before lower-ranked claims.

FTX collapsed in late 2022 following revelations of misused customer deposits, triggering one of the largest bankruptcies in crypto history. Since then, the Recovery Trust, advised by Sullivan & Cromwell, Alvarez & Marsal, Perella Weinberg, Quinn Emanuel, and Landis Rath & Cobb has been liquidating assets and pursuing litigation to return funds to customers. Previous rounds of distributions in 2024 and 2025 returned billions to creditors.

Future distribution dates will be announced once additional funds are recovered or claims processed.

This is a developing story.


This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 24 - 26, 2026

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Unlocked by Template.png

Research

The march toward an interoperable and onchain-by-default internet depends on reliable messaging and value transfer across heterogeneous domains. Crosschain protocols now process >$1.3T in combined annual transfer volume and secure tens of millions of user interactions, yet no single design dominates.

article-image

As the shutdown enters its second week, sources say the Senate Banking Committee looks to move ahead with a market structure bill markup

article-image

The collaboration expands Ripple’s Middle East footprint, supporting Bahrain’s blockchain adoption and future rollout of Ripple USD

by Blockworks /
article-image

The medical device firm will manage its $400 million Solana holdings using Coinbase Prime infrastructure to bolster its digital asset strategy

by Blockworks /
article-image

The deal gives PayPay a 40% stake in Binance Japan, linking digital assets with Japan’s largest mobile payment network

by Blockworks /
article-image

Citigroup’s venture arm backs BVNK to expand stablecoin payments infrastructure amid growing US regulatory clarity

by Blockworks /
article-image

The partnership integrates Deutsche Bank’s payment rails with Bullish’s regulated exchange, streamlining fiat operations for institutional traders

by Blockworks /