Bankrupt crypto exchange FTX has announced that it will begin its next round of cash distributions to creditors on or around September 30, 2025. The record date for eligible claimants is set for August 15.
Key Takeaways:
- FTX will begin its next round of cash payouts to approved creditors on September 30.
- A $1.9 billion court-approved reduction in disputed claims reserve frees up more funds for distributions.
- To receive payments, claimants must complete KYC, submit tax forms, and onboard with BitGo, Kraken, or Payoneer.
The upcoming distribution will cover holders of allowed claims in Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and Convenience Claims that have been approved since the last round, according to a statement released Wednesday.
The payments will be processed through FTX’s designated distribution partners, including BitGo, Kraken, and Payoneer.
FTX Wins Court Approval to Slash Claims Reserve by $1.9B
In another development, FTX received approval from the Bankruptcy Court to reduce its disputed claims reserve by $1.9 billion, from $6.5 billion to $4.3 billion.
The adjustment frees up additional cash for the next phase of payouts to approved creditors.
FTX emphasized that distributions will only be made to claimants who have completed Know Your Customer (KYC) verification, submitted the necessary tax forms, and onboarded with one of the three distribution platforms.
For those with transferred claims, the transfer must be fully processed and recorded on the official register before the August 15 record date.
This marks another step forward in the exchange’s restructuring process.
Earlier this year, FTX began repaying creditors after securing court approval for its redistribution plan, and to date, has returned approximately $6.2 billion.
FTX, once a dominant player in the crypto space, collapsed in November 2022 following a liquidity crisis triggered by revelations about its balance sheet.
The fallout led to criminal charges against founder Sam Bankman-Fried, who was sentenced in 2023 to 25 years in prison for defrauding customers and investors of more than $11 billion.
However, he is now projected to be released from federal prison on December 14, 2044, after serving less than 21 years of his 25-year sentence for fraud tied to the FTX collapse for good behavior.
He was also fined over $11 billion. Federal records confirm that Bankman-Fried has been moved from New York to a transfer facility in Oklahoma following nearly two years behind bars.
Chinese Creditor Challenges FTX Plan to Block Global Payouts
A Chinese creditor representing over 300 users is opposing FTX’s proposal to restrict payouts in 49 jurisdictions, including China, arguing it is legally unfounded and unfair.
The creditor, Weiwei Ji, holds $15 million in verified claims and says Chinese users should not be penalized due to regulatory assumptions, especially with legal pathways through Hong Kong.
The objection follows a motion filed by the FTX Recovery Trust seeking to evaluate claims across 49 jurisdictions flagged as “potentially restricted.” These include China, Russia, and Pakistan.
Claims from the 49 jurisdictions total roughly $800 million, with China accounting for the vast majority, 82%, according to figures cited by The Block.
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