FTX to Distribute Another $1.6 Billion to Creditors in the end of September

The bankrupt crypto exchange FTX will disburse an additional $1.6 billion to creditors at the end of this month, marking the third wave of repayments under its ongoing Chapter 11 reorganization plan.

The estate confirmed on Friday that payouts will begin on September 30.

Breakdown of the Third Distribution

This latest round will cover both convenience and non-convenience classes of creditors. The convenience class refers to smaller retail traders who make up the majority of FTX’s creditor base, while the non-convenience group includes larger and more complex claims.

FTX has emphasized that it structured its initial payouts to prioritize retail customers. Earlier this year, smaller claimants received refunds equal to roughly 120% of their original exchange balances at the time of FTX’s collapse in November 2022.

Frustrations Over Fiat Refunds

Despite the distributions, some former users remain frustrated with the bankruptcy process. Many argue that receiving cash payouts does not reflect the present value of the crypto they once held on FTX. Since late 2022, digital asset prices have rebounded sharply, leaving many users with the sense that they missed out on significant upside.

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Progress for Unsecured Lenders

FTX also provided an update on unsecured creditor groups, including Class 6A General Unsecured Claims and Class 6B Digital Asset Loan Claims, which represent parties that lent funds to FTX or its sister firm Alameda Research. To date, these lenders have received 85% of their projected recoveries, with the bankruptcy plan estimating full repayment over time.

Outlook

The estate’s steady progress in disbursing funds underscores how far the bankruptcy process has advanced since FTX’s implosion nearly three years ago. While retail users are seeing strong recovery relative to many bankruptcy cases, the gap between fiat reimbursements and today’s soaring crypto valuations continues to fuel debate over fairness.
The September 30 payout will serve as the next milestone in a case that has reshaped both crypto markets and regulatory discussions worldwide.