FTX to Begin $1.9B Distribution to Creditors by September 30, 2025
FTX has announced its next creditor payout. In a press release today, FTX said the record date for the upcoming distribution...
Quick overview
- FTX has announced its next creditor payout, with a record date of August 15 and payments expected to start around September 30, 2025.
- The distribution will cover Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and outstanding Convenience Claims.
- FTX received court approval to reduce its disputed claims reserve by $1.9 billion, increasing liquidity for verified claimants.
- Creditors must complete KYC verification with one of the designated service providers to receive their funds and ensure all documentation is up to date.
FTX has announced its next creditor payout. In a press release today, FTX said the record date for the upcoming distribution is August 15 with payments expected to start on or around September 30, 2025. This is a big step in the ongoing bankruptcy process as creditors wait for some recovery from the multi-billion dollar collapse.
The distribution applies to:
- Class 5 Customer Entitlement Claims
- Class 6 General Unsecured Claims
- Outstanding Convenience Claims not settled in previous distributions
These claims must have been allowed after earlier deadlines but not paid.
$1.9B Reserve Reduction Approved
FTX got court approval to reduce its disputed claims reserve by $1.9 billion from $6.5 billion to $4.3 billion. This unlocks more liquidity so FTX can pay more verified claimants.
This reserve reduction means FTX has resolved a lot of previously disputed claims so stakeholders have more confidence in the payout timeline.
Distribution will be through three service providers:
- BitGo
- Kraken
- Payoneer
FTX says creditors must complete KYC verification with one of the providers to receive funds. If you don’t complete this step, payments will be delayed.
What Creditors Should Do Now
To get paid, creditors need to act fast. With the record date set for August 15, claimants must make sure all documentation and KYC verification is complete.
Action items for eligible creditors:
- Verify claim eligibility under Class 5, Class 6 or Convenience categories
- Complete KYC process through BitGo, Kraken or Payoneer
- Ensure all contact and banking info is up to date
Legal and financial advisors warn that if you don’t meet these requirements you will be excluded from this distribution.
FTX’s bankruptcy has been under the microscope since the exchange collapsed in late 2022. With billions at stake and more distributions to come, this $1.9 billion payout could be the first real relief for thousands of creditors caught in the fallout.
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