FTX Partners with Payoneer to Distribute Funds to Former Users

The partnership will allow Payoneer to become a third-party service provider in association with Kraken and BitGo.

Bankrupt cryptocurrency exchange FTX is partnering with payment platform Payoneer to assist in the next phase of fund distributions to its former users.

This move, which will also see Payoneer become a third-party service provider in association with Kraken and BitGo, comes under FTX’s broader Chapter 11 Plan of Reorganization approved by the U.S. Bankruptcy Court in Delaware.

According to a statement on Wednesday, Payoneer will be offering the supported users an option for increased flexibility in selecting the way they want to be paid back under the structured payout plan.

The third-party service provider will also be guiding the users to complete identity verification and banking process in order to facilitate efficient transfer of funds. This avenue will begin making payments on claims that are received after May 30, 2025.

FTX Is Continuing Its Multi-Phase Reimbursement Process

The development comes as FTX continues its multi-phase attempt to return funds to creditors following its collapse last year. The exchange is aiming to complete the process by the end of the year through a regulated framework established by the court.

The platform has maintained that users must complete the mandatory Know Your Customer process and fill out any relevant tax forms. Once registered, they can select either Payoneer or a preferred third-party service provider for distributing their claim.

FTX Token Shows Small Increase After Distribution Update

FTX’s native token FTT showed a small increase in price following the official announcement of the Payoneer partnership and the new stage of the claims process. The token went up by 1.8% and was trading at $0.98 in the past 24 hours.

Market analysts said the rise was due to increased optimism in the exchange’s recovery process, noting that the move could also see FTT retest the $1 mark.

The exchange’s statement further warned people not to use unofficial websites that are imitating the claims procedure. FTX maintained that all communications would originate from verified channels to prevent misuse. The organization further cautioned that the designated third-party service providers would do any fund transfer.

The latest reimbursement stage, announced in May, comprises Convenience and Non-Convenience Class creditors. FTX confirmed this phase will distribute approximately $5 billion in total. The Payoneer alternative opens up the eligibility list for this refund endeavour.