Reports have disclosed that the FTX Recovery Trust is preparing to release another $1.6 billion to its creditors by September 30. The payout marks the third distribution since the exchange collapsed in late 2022, and payments are expected to reach verified claimants within three business days once they are processed through BitGo, Kraken, or Payoneer.
International customers under the dotcom entity will receive another 6%, bringing them closer to 78% overall. General unsecured creditors, along with those holding digital asset loan claims, will see 24% more, which raises their cumulative recovery to nearly 85%.
Once released, the funds are expected to clear into accounts within days, giving long-awaited relief to thousands who lost money in the collapse.
While progress has been steady, many customers have still complained about the freezing of valuations at their November 2022 prices. At that time, digital currencies like Bitcoin and Ether traded far below the levels that would occur in 2025.
The question of fairness remains. Smaller convenience claims receive more than what they lost, while large creditors argue theirs should be weighed against the stagnant valuations of their assets.
This was intended under the company’s legal documents to facilitate administration and avoid extensive litigation, but it raised the ire of foreign creditors that have greater impediments than creditors situated in the US.
For now, the $1.6 billion payment is yet another milestone to the FTX rescue process, but it does not solve all the complaints.
With billions already paid out in previous rounds, the trust is still under pressure to continue disbursing and to finally bring closure to one of the largest cryptocurrency bankruptcies in history.
Featured image from Andrey Rudakov/Getty Images, chart from TradingView
