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The FTX Recovery Trust has announced that it will commence its third distribution to creditors impacted by the collapse of the cryptocurrency exchange, with payments scheduled to begin on 30 September 2025. This upcoming distribution will see approximately USD 1.6 billion allocated to eligible creditors who have met all pre-distribution requirements as outlined in the approved Chapter 11 Plan of Reorganisation.
Creditors are divided into Convenience and Non-Convenience Classes within the Plan. Those with allowed claims in the Dotcom Customer Entitlement Claims category (Class 5A) will receive an additional 6% distribution, bringing their cumulative recovery to 78%. Meanwhile, US Customer Entitlement Claims (Class 5B) will benefit from a substantial 40% distribution in this round, raising their total to 95% recovered. General unsecured claims (Class 6A) and digital asset loan claims (Class 6B) will each receive 24%, increasing their recoveries to 85%. Notably, Convenience Claims (Class 7) are set for a distribution of 120%, exceeding the owed amount.
Eligible creditors can expect to receive their funds within one to three business days following the distribution date, through one of the designated service providers: Bitgo, Kraken, or Payoneer.
These scheduled payouts continue the ongoing effort to return funds after the catastrophic failure of FTX in November 2022, which marked one of the largest bankruptcies in the crypto sector. The FTX Recovery Trust has already released over USD 6 billion to creditors through prior distributions.
Since the exchange’s collapse, advisors such as Sullivan & Cromwell, Alvarez & Marsal, and Quinn Emanuel have supported extensive asset liquidations and litigation efforts to maximise creditor recoveries. The Trust’s management follows a structured "waterfall" distribution priority, ensuring senior claims receive repayment before subordinate classes.
Alongside the distribution news, the native FTX token (FTT) has displayed notable price movement, surging by 22% in the last seven days. The token peaked at USD 1.13 on 18 September, fluctuating between USD 0.78 and USD 1.06 throughout the week. Despite this rally, FTT’s all-time high of USD 84.18 from September 2021 remains nearly 99% above current price levels.
The third distribution marks a significant milestone in the recovery process as creditors edge closer to full compensation, reflecting both the complex legal proceedings and ongoing asset realisations.
