FTX, one of the biggest financial scandals in crypto history, is set to launch a new wave of repayments starting on September 30, 2025, for creditors whose claims were validated before or on August 15, 2025. This follows the redistribution of nearly $6.2 billion in cash, with more to come.
FTX announces a new wave of repayments
The redistribution plan, approved by the US court, envisions a massive cash payout through platforms like BitGo, Kraken, and Payoneer. After the devastating collapse of FTX, victims are finally seeing some hope for recovering their losses.
At the heart of this financial disaster is Sam Bankman-Fried, once hailed as a crypto golden boy. The FTX empire crumbled in 2022 amidst revelations of financial misconduct, leading to Bankman-Fried’s conviction on seven counts of fraud and conspiracy, resulting in $11 billion in damages and a 25-year prison sentence.
Sam Bankman-Fried, from king to pariah
While the repayment plan appears ambitious, uncertainties loom. The reduction of the reserve for disputed claims from $6.5 billion to $4.3 billion by the bankruptcy court may expedite repayments but also risks limiting future refunds in case of prolonged legal disputes.
Additionally, the final distribution remains unclear, with cash repayments based on pre-bankruptcy asset values, falling short of current market rates, leaving former clients frustrated at missing out on recent market gains.
An ambitious yet uncertain repayment plan
The FTX case serves as a lesson for the crypto industry, prompting regulatory scrutiny, dampening institutional investor interest, and eroding user trust. The upcoming September repayment phase will be a crucial test for FTX’s plan and the ecosystem’s ability to move forward.
