FTX has added global fintech firm Payoneer to its list of approved distributors for creditor payouts, the FTX Recovery Trust and FTX Digital Markets confirmed Tuesday.
Key Takeaways:
- FTX has added Payoneer as a distributor for post-May 30, 2025 creditor payouts.
- The Chapter 11 repayment plan aims to return up to $16.5 billion to former customers.
- Analysts warn the payouts could introduce short-term crypto market volatility.
Payoneer becomes the third official distributor for FTX and the second for FTX Digital Markets, and will handle payments dated after May 30, 2025, according to a June 10 announcement.
The move is aimed at expanding payment accessibility as FTX proceeds with its bankruptcy repayment plan, which began its second major distribution, totaling over $5 billion, at the end of May.
FTX Repayment Plan Targets $16.5B in Customer Payouts Under Chapter 11
The broader repayment effort, part of the Chapter 11 reorganization, is expected to return between $14.7 billion and $16.5 billion to former customers.
Despite Payoneer’s reach across 93 jurisdictions, some users have voiced frustration on social media, saying their countries are still excluded from the list of eligible payout regions.
Others remain critical of FTX’s valuation methodology, which calculates payouts based on crypto prices at the time of the exchange’s collapse in November 2022, when bitcoin was worth just $17,583, compared to over $109,000 today.
On May 30, the FTX Trust began distributing $5 billion to eligible creditors who completed pre-distribution requirements, targeting both the Convenience and Non-Convenience Classes.
Under the plan, Dotcom Customer Entitlement Claims are set to receive a 72% distribution, while US Customer Entitlement Claims will see a 54% payout.
Convenience Claims will receive a full 120% reimbursement. General Unsecured Claims and Digital Asset Loan Claims are scheduled for a 61% distribution.
The FTX reimbursements are being closely watched by crypto investors, as large liquidity injections from these payouts could impact digital asset markets.
Analysts warn that if recipients choose to offload or swap their recovered funds on retail exchanges, it could introduce short-term price volatility.
This was the second major disbursement since FTX’s collapse. The first round of payments, totaling $1.2 billion, was distributed on February 18 to claimants with less than $50,000 in approved claims.
Sam Bankman-Fried’s Release Date Set for 2044
FTX founder Sam Bankman-Fried is now projected to be released from federal prison on December 14, 2044, after serving less than 21 years of his 25-year sentence for fraud tied to the FTX collapse.
He was also fined over $11 billion. Federal records confirm that Bankman-Fried has been moved from New York to a transfer facility in Oklahoma following nearly two years behind bars.
The move comes after Bankman-Fried was reportedly placed in solitary confinement earlier this month for giving an unauthorized interview to Tucker Carlson.
His incarceration began in August 2023, after Judge Lewis Kaplan revoked his bail due to allegations of witness tampering involving leaked diary entries from former Alameda CEO Caroline Ellison, who was a key witness in the case.
The post FTX Creditors Can Now Choose Payoneer for Post-Bankruptcy Payments appeared first on Cryptonews.
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