FTX pays out $1.6 billion – new liquidity boost?

INFBusiness
20.09.2025
Markets

The next payout for aggrieved FTX investors is imminent. As the FTX Recovery Trust announced in a press release, approximately $1.6 billion will be distributed to former customers and creditors of the insolvent FTX crypto exchange on September 30. This is the third major payout since the trust took over the resolution.
Four defined creditor groups are eligible to receive repayments ranging from 78 to 120 percent of the original value, based on the date of FTX's collapse in November 2022. This is intended to also take into account exchange rate fluctuations and market losses.
Creditors receive the funds either in cash or in stablecoins.
The technical processing of payouts is handled by the crypto custodians BitGo and Kraken, as well as the payment service provider Payoneer. They are intended to ensure that both institutional and private creditors receive their funds reliably.
With the upcoming payment, the total amount of funds already repaid rises to several billion US dollars. Overall, the repayment plan calls for a total repayment of over 16 billion US dollars, spread across several tranches over the coming months.
The first two rounds of payments had already satisfied a significant portion of the claims. The third tranche will continue this process to gradually ensure full compensation.
The payouts could provide a new liquidity boost to the crypto markets. After all, a majority of victims had stated that they wanted to reinvest their holdings in Bitcoin and other cryptocurrencies.
Background: FTX collapsed in November 2022 when it was revealed that customer funds had been diverted and used to cover losses at the company-affiliated hedge fund Alameda Research. This led to one of the worst bankruptcies in the history of the crypto industry.
Then-CEO Sam Bankman-Fried was found guilty of fraud in 2024 and sentenced to 25 years in prison.

The demise of FTX has shown how risky unregulated platforms can be. Anyone looking to invest safely and in regulated Bitcoin, Ethereum, and other cryptocurrencies will find an EU-regulated alternative in Bitpanda.

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