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FTX has announced a strategic partnership with Payoneer to streamline the distribution of compensation funds to affected customers following its bankruptcy proceedings.
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This collaboration positions Payoneer as an optional intermediary, joining BitGo and Kraken in facilitating reimbursements under the Chapter 11 Plan of Reorganization.
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According to COINOTAG, “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.”
FTX partners with Payoneer to enhance fund distribution for eligible customers amid bankruptcy, joining BitGo and Kraken in a $5 billion reimbursement plan.
FTX and Payoneer Partnership Enhances Compensation Fund Distribution
In a significant development for FTX customers awaiting reimbursement, the bankrupt crypto exchange has formalized a partnership with Payoneer, a global payment and distribution service provider. This move aims to improve the efficiency and accessibility of compensation payments to retail customers who have filed claims and are eligible under the ongoing legal proceedings. Payoneer will act as an optional intermediary, allowing claimants to receive funds directly credited to their bank accounts in their preferred currency. This new option complements existing distribution channels provided by BitGo and Kraken, expanding the avenues available for customers to reclaim their assets.
Operational Details and Customer Onboarding for Payoneer Distributions
Customers seeking reimbursement through Payoneer must complete a series of verification steps, including Know Your Customer (KYC) procedures and submission of relevant tax documentation via the official claims portal. Once onboarded, Payoneer will facilitate the transfer of funds based on the approved reimbursement amounts under the Chapter 11 Plan. It is important to note that customers opting for Payoneer will forfeit their right to receive funds in cash directly, as the payments will be processed exclusively through the payment service provider. This structured approach ensures compliance with the legal framework established by the United States Bankruptcy Court for the District of Delaware, while providing a secure and transparent payment mechanism.
Impact on FTX Token and Market Sentiment Post-Announcement
Following the announcement of the Payoneer partnership, FTX’s native token, FTT, experienced a modest price increase of approximately 1.8%, trading near $0.98 within 24 hours. This uptick reflects cautious optimism among investors and stakeholders regarding the progress of the reimbursement process. Market analysts suggest that the introduction of multiple distribution channels, including Payoneer, may enhance confidence in the exchange’s restructuring efforts. However, FTX continues to caution users against phishing attempts and fraudulent websites impersonating official channels, underscoring the importance of vigilance during this sensitive period.
Broader Context: The $5 Billion Second Distribution Phase
Earlier in May 2025, FTX announced the commencement of its second distribution phase, earmarking approximately $5 billion for eligible creditors across both Convenience and Non-Convenience Classes. This phase is a critical component of the broader Chapter 11 Plan of Reorganization, designed to systematically reimburse affected parties. The inclusion of Payoneer as a distribution partner aligns with FTX’s commitment to providing flexible and secure options for fund recovery, aiming to expedite the reimbursement timeline and improve customer experience.
Conclusion
The partnership between FTX and Payoneer marks a pivotal step in the ongoing efforts to resolve the fallout from the exchange’s bankruptcy. By expanding the distribution network to include Payoneer alongside BitGo and Kraken, FTX is enhancing the accessibility and security of compensation payments for its customers. While the process remains complex and governed by strict legal protocols, these developments offer a structured path forward for claimants seeking reimbursement. Stakeholders are advised to remain vigilant against scams and to utilize official channels for all claims and communications to safeguard their interests.
