FTX has officially incorporated global fintech company Payoneer into its network of authorized distributors responsible for creditor payments, as confirmed in a statement from the FTX Recovery Trust and FTX Digital Markets on Tuesday.
Key Takeaways:
- Payoneer will manage distributions for creditor payouts effective after May 30, 2025.
- The Chapter 11 repayment initiative seeks to return as much as $16.5 billion to former customers.
- Experts caution that these payouts could lead to temporary volatility within the cryptocurrency market.
As the third official distributor for FTX and the second for FTX Digital Markets, Payoneer is set to oversee payments post-May 30, 2025, following a June 10 announcement. This strategic decision aims to enhance the accessibility of payments while FTX continues its bankruptcy repayment process, which recently entered a significant new phase with the distribution of over $5 billion at the end of May.
FTX Repayment Plan Targets $16.5B in Customer Payouts Under Chapter 11
The comprehensive repayment strategy, part of the broader Chapter 11 reorganization, is projected to return between $14.7 billion and $16.5 billion to former customers. Despite Payoneer’s extensive service footprint across 93 jurisdictions, some users expressed dissatisfaction via social media, reporting that their countries remain ineligible for payouts.
Moreover, concerns have emerged regarding FTX’s calculation methodology for payouts, which relies on the cryptocurrency values at the time of the exchange’s collapse in November 2022, when bitcoin was valued at just $17,583, significantly lower than its current price exceeding $109,000.
(2/2) 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.
— FTX (@FTX_Official) June 10, 2025
On May 30, the FTX Trust commenced the distribution of $5 billion to eligible creditors who had satisfied pre-distribution criteria, focusing on both the Convenience and Non-Convenience classes. According to the payment plan, claims from Dotcom customers will receive a 72% distribution, while US customer claims will be eligible for a 54% payout. Convenience claims are set for a full 120% reimbursement, and general unsecured claims along with digital asset loan claims are scheduled to receive a 61% distribution.
The FTX reimbursements are under close scrutiny by cryptocurrency investors, as these significant liquidity injections could potentially sway the dynamics of the digital asset markets. Analysts warn that if recipients decide to liquidate or exchange their recovered funds on retail platforms, the result may be fluctuations in price over the short term.
This marks the second major payout since FTX’s downfall, following an initial distribution of $1.2 billion on February 18 to claimants with approved claims under $50,000.
Sam Bankman-Fried’s Release Date Set for 2044
FTX’s founder, Sam Bankman-Fried, is now predicted to be released from federal prison on December 14, 2044, having served under 21 years of a 25-year sentence related to the FTX collapse fraud case. He has also been ordered to pay a fine exceeding $11 billion. Recent federal records indicate that he has been transferred from New York to a facility in Oklahoma after spending nearly two years in custody.
This transition follows reports that Bankman-Fried was placed in solitary confinement earlier this month due to an unauthorized interview he gave to Tucker Carlson. His imprisonment began in August 2023 after Judge Lewis Kaplan revoked his bail amid allegations of witness tampering involving the leaked diary entries of Caroline Ellison, the former CEO of Alameda Research and a pivotal witness in the trial.
The content above highlights FTX’s latest developments in the context of its ongoing bankruptcy and the implications for creditors. The evolving situation is being monitored closely by those within the cryptocurrency landscape.
