FTX partners with Payoneer to distribute customer refunds
FTX has declared it is partnering with distribution service provider Payoneer to distribute funds to affected customers. Payoneer will reportedly act as an optional intermediary in reimbursing funds.
According to the official press release, Payoneer will assist in distributing compensation funds to retail customers who are registered and deemed eligible to receive the funds from the legal proceedings related to the bankrupt exchange. The service will be available to help process customer requests for reimbursements that have been lodged after May 30, 2025.
“For transferred claims, distributions will only be made to the transferee holder of an allowed claim that is processed and reflected on the official register of claims maintained by the Notice and Claims Agent as of future record dates, where the 21-day notice period has lapsed without objection,” wrote the company in its statement.
With this partnership, Payoneer officially becomes the third distribution service provider to work together with FTX (FTT) to distribute its compensation funds. The firm joins two other major crypto platforms, BitGo and Kraken, in facilitating payment distributions for FTX customers.
The distribution of compensation funds will be part of the wider Chapter 11 Plan of Reorganization mandated to the exchange by the the United States Bankruptcy Court for the District of Delaware.
In a recent post, the now-bankrupt exchange also reminded users to remain cautious of phishing emails and fake websites impersonating the official site to avoid losses. After the announcement aired, the price of the exchange’s native token jumped slightly by 1.8% according to data on crypto.news. It is now trading by $0.98 in the past 24 hours.
FTX Recovery Trust and its Digital Markets arm reminded customers that once they have chosen Payoneer for the reimbursement process, they will also be relinquishing their right to receive the distributed funds in cash. This right to receive cash was granted to customers from the original reimbursement plan approved by U.S. authorities.
Instead, FTX will be sending the funds through Payoneer which will then be credited the customer’s selected bank account in the applicably currency depending on the chosen bank account. The amount credited to the account will be calculated based on the available cash distributions they are entitled to receive under the reimbursement plan.
In order to receive compensation funds through Payoneer, customers would first need to login to the official claims portal, fill in Know Your Customer verification, submit the necessary tax forms and proceed to onboard their chosen payment service provider of either BitGo, Kraken or Payoneer.
Earlier in May, FTX announced the second round of distribution to eligible creditors. The second phase of distributions covers eligible creditors in both the Convenience and Non-Convenience Classes and amounts to around $5 billion in reimbursement funds.
