FTX and its Recovery Trust will start the third creditor distribution on September 30, 2025.
Creditors who have completed the required pre-distribution steps can expect funds from their selected Distribution Service Provider, including BitGo, Kraken, or Payoneer, within one to three business days.
The third distribution follows the priority rules established in FTX’s Chapter 11 Plan. Dotcom customer entitlement claims, classified as Class 5A, will receive an additional six percent distribution, bringing the cumulative total to seventy-eight percent. U.S. customer entitlement claims in Class 5B will see a forty percent payout in this round, totaling 95% of their allowed claims to date. General unsecured claims (Class 6A) and digital asset loan claims (Class 6B) are each scheduled for a twenty-four percent distribution, bringing cumulative payouts to 85%. Convenience claims in Class 7 will receive a full one hundred twenty percent distribution.
Eligible creditors who have opted to use a Distribution Service Provider have chosen to receive payments directly through that platform rather than from FTX itself. This ensures faster and more secure transfers but requires onboarding with the service provider before receiving funds. For example, a U.S.-based FTX customer who completed KYC verification and tax forms and onboarded with Kraken can expect to see their distribution credited directly to their Kraken account.
To participate in future distribution rounds, creditors must complete several steps. They need to log in to the FTX Customer Portal, complete KYC verification, submit any required tax forms, and onboard with one of the approved Distribution Service Providers. For transferred claims, only the registered transferee will be eligible for payouts, provided the claim has been officially recorded and the 21-day notice period has passed without objection.
This structured approach reflects a broader trend in the crypto industry toward more transparent and regulated recovery processes following high-profile bankruptcies. Investors and creditors now have clearer guidance and secure avenues to reclaim lost funds, improving confidence in digital asset markets.
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies presented are the thoughts and opinions of the writer/reviewers, and their risk tolerance may differ from yours. We are not responsible for any losses you may incur due to any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments; therefore, please conduct your due diligence. Copyright Altcoin Buzz Pte Ltd.
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(1/3) FTX today announced it is set to distribute approximately $1.6 billion in its Third Distribution to holders of allowed claims in the Plan’s Convenience and Non-Convenience Classes that have completed the pre-distribution requirements on September 30, 2025.
(3/3) FTX also reminds customers to please remain aware of phishing emails that may look like they are from FTX and scam sites from channels that may appear to look like the FTX Customer Portal.
