FTX’s bankruptcy case continues to move forward as the exchange prepares for its next round of creditor repayments, set to begin at the end of September.
Summary
- FTX will begin its next distribution to creditors on Sep. 30, 2025.
- A U.S. court approved the release of $1.9B in cash for this round.
- Creditors continue to challenge valuation methods and payout exclusions.
The update offers progress for creditors still waiting nearly three years after FTX’s collapse in late 2022. According to a statement published July 23, the next distribution to holders of approved Class 5 (Customer Entitlement Claims), Class 6 (General Unsecured Claims), and certain Convenience Claims will begin on or around Sep. 30, 2025. The record date to qualify is set for Aug. 15, 2025.
This comes after a recent court decision that reduced FTX’s disputed claims reserve from $6.5 billion to $4.3 billion, allowing it to release $1.9 billion in cash. The September payout will include the distribution of this extra liquidity to qualified creditors.
Court Approval Unlocks Funds for Next Distribution
FTX’s Distribution Service Providers, BitGo, Kraken, and Payoneer, will handle the payouts. Claimants must complete know-your-customer verification, submit tax forms, and be properly registered by the August deadline to receive their payment.
The release of the $1.9 billion was approved by the U.S. Bankruptcy Court in Delaware, following the October 2024 confirmation of FTX’s broader reorganization plan. That plan enables the repayment of up to $16.5 billion, including full principal and 9% interest for most non-governmental creditors.
Although this is a positive step, there are still challenges, particularly in regions where payouts are restricted by legal or regulatory concerns. China and Russia, for example, account for almost $470 million in claims. Some creditors are considering lawsuits over the exclusions, and legal objections are still being raised.
Creditors Frustrated by Valuation Method
FTX is repaying claims based on crypto asset values at the time of bankruptcy in November 2022, when Bitcoin (BTC) traded between $16,000 and $20,000. Given that Bitcoin is now worth about $120, 000 and other altcoins have registered significant gains as well, creditors are dissatisfied because they feel shortchanged in the cryptocurrency market’s recovery.
Several claimants have filed lawsuits, arguing they are owed the current market value based on FTX’s terms of service. However, the bankruptcy court has so far upheld the original dollar-based valuation model.
Despite recovering as much as $16.5 billion, FTX had lost nearly all customer-held crypto by the time of bankruptcy, with only 0.1% of Bitcoin and 1.2% of Ethereum (ETH) reportedly available.
