FTX to Distribute $1.6B to Creditors in Next Round

The defunct crypto exchange FTX announced today that it is set to distribute $1.6 billion to eligible creditors. The planned move will be the firm’s third payout after its dramatic collapse in 2022. The distribution, part of the Chapter 11 reorganization plan, is designed to assist individuals with valid claims against the company.

The news also comes as founder Sam Bankman-Fried’s account on X was reactivated, sparking speculation and increased market activity surrounding FTX’s bankruptcy case.

FTX to Kick Off Third Distribution Plan

The FTX Recovery Trust disclosed the details of the Third Distribution, with payments set to start on September 30. The defunct exchange had confirmed that payments will be processed through platforms such as BitGo, Kraken, or Payoneer and should be reflected in accounts within one to three business days.

The company, now led by CEO John J. Ray III, is working to recover lost funds by selling assets and pursuing legal action. It focuses its reorganization plan on paying back creditors first. For example, the first payment, known as the Initial Distribution, was announced on February 18, 2025, and FTX paid out $1.2 billion shortly after.

This was followed by a second payout in May 2025, which included payments to both small and large claim holders. However, to receive these payments, creditors must meet strict requirements, including identity verification and submitting tax documents.

A Founder’s Digital Echo

FTX’s woes began on November 11, 2022, when it became apparent that customers were attempting to withdraw funds, but a shortfall of approximately $8 billion was discovered. This led the company and 101 of its related companies to file for Chapter 11 bankruptcy. The situation worsened when founder Sam Bankman-Fried was found guilty of fraud and received a 25-year prison sentence.

Meanwhile, in a dramatic twist, Bankman-Fried’s X account (@SBF_FTX) reappeared last week, mysteriously following other users. This resulted in a 22% increase in FTT token trading. While some speculated about insider trading, the market soon regarded this as insignificant.

Although the upcoming $1.6 billion payment is a crucial step toward resolving FTX’s troubled history, unresolved creditor claims persist in some countries, such as China.

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