FTX Creditors to Receive More Payouts: Here is How to Claim

2025-07-24

For those who suffered losses during the dramatic collapse of the FTX cryptocurrency exchange in late 2022, a significant step towards restitution is underway.

The FTX Recovery Trust has announced the next major round of payouts to creditors, with distributions slated to commence around September 30, 2025.

This represents a crucial milestone in what has been a complex and arduous bankruptcy proceeding, signaling a clearer path to recouping funds for many affected individuals and entities.

FTX Recovery Effort

The ability of the FTX estate to recover substantial assets and move towards significant repayments is a remarkable development in the crypto bankruptcy landscape. Historically, creditors in such cases often face the prospect of recovering only a fraction of their losses.

However, diligent efforts in asset sales, legal actions, and reconciliation processes have positioned FTX to return a much higher percentage of funds than initially anticipated, providing a glimmer of hope to those impacted by the actions of figures like Sam Bankman-Fried, the exchange's disgraced founder.

This article details who is eligible for this distribution, the critical steps required to claim your funds, and important considerations for a smooth payout process.

Eligibility for the Upcoming Distribution

The latest distribution window targets specific categories of claimants under the confirmed reorganization plan. Your claim's "class" determines eligibility for this round:

Allowed Class 5 Customer Entitlement Claims: These are claims by individual customers of the FTX exchange who held cryptocurrency or fiat currency on the platform. "Entitlement" signifies their right to recover assets held on their behalf.
Allowed Class 6 General Unsecured Claims: This broader class includes non-customer creditors such as vendors, service providers, or businesses owed money by FTX but whose assets were not directly held on the exchange.
Convenience Claims: These are smaller, simplified claims that became allowed after earlier cutoffs and have not yet been paid. Convenience claims expedite payments to smaller creditors, often with reduced administrative burden.

The record date for this distribution is August 15, 2025. Only claims officially recognized and recorded on the claims register by this date will be considered for the September 30 payout.

This also applies to any transferred claims; the assignment must be fully processed and reflected on the official register by August 15, after the standard 21-day objection period has expired without challenge.

The Path to Recovery: How FTX Secured More Funds

FTX Creditors to Receive More Payouts Here is How to Claim - image.webp

The journey to these significant repayments has involved extensive asset recovery and legal proceedings. The FTX estate, under new leadership since Sam Bankman-Fried's departure, has prioritized maximizing returns for creditors.

A pivotal development is the court approval to reduce the disputed claims reserve by $1.9 billion, bringing it from $6.5 billion to $4.6 billion. This move frees up significant additional cash for distribution, indicating that many previously contested claims have been resolved.

The remarkable recovery achieved by the FTX estate, reportedly clawing back between $14.7 billion and $16.5 billion in assets, is noteworthy.

This amount is higher than initial estimates of what was owed, with reports indicating that 98% of creditors are expected to receive 119% of what they were owed based on the bankruptcy filing date in November 2022.

This impressive turnaround is largely attributed to:

Asset Identification and Sale: Methodically locating and liquidating various digital and traditional assets.
Litigation and Clawbacks: Pursuing legal actions against parties who received preferential transfers (funds withdrawn shortly before bankruptcy) or misappropriated assets.
Reconciliation: Meticulous accounting to reconcile customer balances with recovered assets, a challenging task given the commingling of funds under previous management.

This robust recovery contrasts sharply with many other crypto bankruptcies, offering a potential blueprint for how strategic planning can lead to positive outcomes even in challenging digital asset insolvencies.

Essential Steps to Claim Your Payout

For eligible creditors, fulfilling necessary pre-distribution requirements is critical. Only claimants who have cleared all these hurdles will receive disbursements. Here's how to claim your payout:

1. Complete Know Your Customer (KYC) Checks:

What is KYC? KYC, or "Know Your Customer," is a mandatory process for financial entities to verify customer identity, complying with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations. It typically involves submitting government ID and proof of address.
Why it's required: KYC ensures funds go to rightful claimants and prevents fraud.

2. Submit Required Tax Forms:

Depending on your jurisdiction, you may need to submit specific tax forms (e.g., W-9s for U.S. persons). Failure to do so can delay or prevent your payout.

Read also : How to Buy FTX Token (FTT)

3. Complete Onboarding with Distribution Service Providers:

Funds will be administered by BitGo, Kraken, and Payoneer.
BitGo: Provides secure digital asset infrastructure, ensuring secure handling of crypto-related distributions.
Kraken: A prominent crypto exchange, likely facilitating crypto or fiat conversions.
Payoneer: A cross-border payment platform for international fiat transfers.
Creditors must complete any necessary account setup or onboarding with their chosen provider. Once FTX transfers money, account access and support shift to that platform.

The FTX Trust explicitly states they do not require connecting wallets to verify eligibility or receive reimbursements directly from the Trust itself. This is a vital security reminder against scams. All official communications will come directly from the FTX Recovery Trust or its authorized partners.

Conclusion: A New Chapter for FTX Creditors

The upcoming distributions, commencing around September 30, 2025, signify a major turning point for FTX creditors. The diligent work of the FTX Recovery Trust has paved the way for more substantial repayments.

For those with allowed claims, preparing now by completing KYC, submitting tax forms, and onboarding with distribution partners is essential.

This ongoing repayment process not only offers financial relief but also serves as a stark reminder of the losses associated with centralized custodians in the crypto space and the critical importance of regulatory compliance and transparent financial practices.

The FTX saga is slowly, but surely, moving towards a resolution, bringing a measure of closure to its many victims.

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FAQ

When is the next FTX creditor payout expected?

The next round of payouts is expected to begin around September 30, 2025, with the record date for eligible claims set for August 15, 2025.

Which types of claims are eligible for this payout?

This round covers holders of allowed Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and certain Convenience Claims that have been approved.

What do I need to do to claim my funds?

You must complete Know Your Customer (KYC) checks, submit any required tax forms, and complete the onboarding process with one of the designated distribution providers (BitGo, Kraken, or Payoneer).

Will FTX ask me to connect my crypto wallet directly to receive funds?

No. The FTX Recovery Trust has explicitly stated they do not require creditors to connect wallets directly to them. Be wary of scams asking for this information.