FTX Recovery Trust is set to repay $1.6 billion to creditors at the end of this month, specifically on September 30. This distribution marks the third phase of the recovery plan following the exchange's bankruptcy in November 2022, where the firm was found to have mismanaged funds. Creditors will receive between 78% and 120% of their original holdings' value at the time of collapse. Payments will be facilitated through crypto exchanges such as Bitgo and Kraken. The funds are intended to make clients whole after billions in investor cash went missing due to mismanagement by the former CEO, Sam Bankman-Fried, who has since been imprisoned for fraud. The ongoing repayment process aims to recover over $5 billion for FTX creditors, illustrating the significant financial aftermath of the exchange's collapse.

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