FTX Estate has added Payoneer as a distribution partner in accordance with its reorganization plan to complement BitGo and Kraken.
By Godfrey Benjamin
Editor Hamza Tariq
Updated
3 mins read
Creditors affected by the 2022 implosion of Bahamian-headquartered FTX Derivatives Exchange can now receive their refund via Payoneer.
This is in addition to the two other distribution partners, BitGo and Kraken, which were selected for the repayment exercise earlier.
The FTX Recovery Trust and FTX Digital Markets recently announced the addition of global fintech firm Payoneer to help distribute payouts from the bankrupt cryptocurrency exchange. With this move, Payoneer has become the third distribution service provider for FTX and the second for FTX DM.
(1/2) FTX announced it has entered into an agreement with an additional distribution service provider, Payoneer, to assist in distributing recoveries to retail customers in supported jurisdictions. For more information, please visit: https://t.co/ra1Q1uyx8r
— FTX (@FTX_Official) June 10, 2025
Going forward, Payoneer will assist in distributing FTX funds to the creditors in 93 jurisdictions who have laid claims on their assets.
It is worth noting that some affected users have not been able to get the defunct exchange to acknowledge their claims. This is because the FTX Estate regards their countries as outside the distribution coverage.
Nigeria, Russia, Egypt, and China fall into this category. It is interesting to note that affected FTX users in these nations make up a significant percentage. According to the estate’s data, FTX creditors from China alone account for 8% of total claims. This has led to frustration among users in those countries.
Even Thomas Braziel, a specialist in FTX claims at 117 Partners, noted that adding the new channel primarily benefits customers in certain regions. This includes India, Indonesia, Japan, and select US states where restrictions on crypto custodians previously blocked payouts.
FTX payouts update: Payoneer now joins BitGo + Kraken. Adds coverage for India 🇮🇳, Indonesia 🇮🇩, Japan 🇯🇵 and the U.S. states NY/ME/WA that crypto custodians block. Still no distributions for China 🇨🇳, Russia 🇷🇺, Nigeria 🇳🇬, Ukraine 🇺🇦, Iran 🇮🇷, Pakistan 🇵🇰. Direct-to-bank fiat… https://t.co/QQFwpA9RMk
— Thomas Braziel (@ThomasBraziel) June 10, 2025
Another criticism has been directed at the FTX Estate since discussions about the reorganization plans began. This stems from the decision to refund creditors based on the dollar value of their account holdings at the time of the bankruptcy in 2022.
It’s important to remember that this period coincided with a severe downturn in the crypto market, triggered by the crash of Terra LUNA LUNA $0.17 24h volatility: 7.4% Market cap: $115.99 M Vol. 24h: $11.02 M , which wiped out nearly $2 trillion from the rapidly growing sector.
To put this into perspective, the price of Bitcoin BTC $107 317 24h volatility: 2.2% Market cap: $2.13 T Vol. 24h: $29.69 B on November 11, 2022, was $17,583, significantly lower compared to its current value of $109,302.59, highlighting the substantial difference in valuation between then and now.
In alignment with its Chapter 11 reorganization plan, FTX announced the commencement of the second distribution of over $5 billion to former customers in May. As stated at the beginning of the year, the total funds to be repaid to creditors are around $16 billion to $18 billion.
FTX creditors’ recoveries differ significantly based on their claim type and valuation, sparking the backlash.
The founder of the firm, Sam Bankman-Fried, was sentenced to prison in relation to the crypto exchange implosion in 2022.
He was found guilty of all seven counts of fraud and criminal conspiracy, which amounted to seven charges against him. This attracted a 25-year jail sentence for Bankman-Fried, even though his legal team had tried to get him a shorter sentence.
However, there are speculations that he would not be imprisoned for up to 25 years. According to the Bureau of Prisons (BOP), SBF is likely to be released on December 14, 2044, which is earlier than the full 25-year sentence he received for his role in the collapse of FTX.
The 4-year reduction in his sentence came about as a result of his good conduct and participation in prison programs since his incarceration.
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Benjamin Godfrey is a blockchain enthusiast and journalist who relishes writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desire to educate people about cryptocurrencies inspires his contributions to renowned blockchain media and sites.