FTX to pay an additional $1.6 billion to creditors in its third bankruptcy allocation on September 30

PANews September 20th news, FTX will pay an additional $1.6 billion to creditors starting September 30 as part of its third allocation of bankruptcy property, according to The Block. The bankruptcy plan was finalized in October 2024 and will use more than $15 billion in recovered assets. FTX's latest payments will target both the exchange's convenience and non-convenience categories. The so-called convenience category usually refers to retail traders and small creditors who make up the majority of the FTX creditor group (up to 99%), while the non-convenience category involves larger or more complex claims. FTX’s initial two allocations were intended to enable retail users of the exchange to receive a refund of about 120% of the exchange’s balance when FTX declared bankruptcy in November 2022. Nevertheless, some former users expressed disappointment with FTX's bankruptcy proceedings, believing that the value of cash spending on FTX's bankruptcy legacy is much lower than what their crypto assets are today without liquidation, given the market's rebound since the bear market trough during the pandemic.