Bankruptcy Court Authorizes Release of $1.9B for FTX Creditor Claims, Establishing September Payment Plan
FTX Announces Next Major Crypto Distribution for September 30, 2025
FTX, the embattled cryptocurrency exchange, has announced that its next major distribution is scheduled for September 30, 2025. The distribution, which is expected to total approximately $1.9 billion, follows a court-approved reduction of FTX's disputed claims reserve from $6.5 billion to $4.3 billion [1][2][3].
To be eligible for payments, claimants must meet the following requirements by the record date of August 15, 2025:
- Complete Know Your Customer (KYC) verification procedures.
- Submit required tax forms.
- Successfully onboard with one of the designated distribution platforms: BitGo, Kraken, or Payoneer. For claimants with transferred claims, ensure the transfers are fully processed and officially recorded before the record date to qualify for distribution [2][3].
Eligible claims include allowed claims across multiple categories, such as Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and approved Convenience Claims processed since the last payout round [2][3].
This distribution represents the third round of payouts by FTX following earlier distributions in February and May 2025, as part of an ongoing bankruptcy proceeding and asset liquidation process [2][3].
Here's a summary of the key details:
| Aspect | Details | |----------------------------|------------------------------------------| | Distribution date | September 30, 2025 | | Record date (eligibility) | August 15, 2025 | | Total payout amount | $1.9 billion | | Eligible claims | Class 5, Class 6, approved Convenience Claims | | Distribution platforms | BitGo, Kraken, Payoneer | | Requirements for payment | KYC verification, tax form submission, platform onboarding, transfer recording (if applicable) |
This payout advances the repayment to creditors but does not represent a final resolution of FTX’s legal and financial challenges, as ongoing claims and regulatory issues persist [2]. Claimants are urged to finalize their verification process soon to ensure their eligibility for the distribution.
[1] The Block
[2] CoinDesk
[3] Decrypt
Eligible claimants, who have completed KYC verification procedures, submitted required tax forms, and onboarded with one of the designated distribution platforms (BitGo, Kraken, or Payoneer), should ensure their transfers are processed before August 15, 2025, to qualify for the upcoming finance business distribution by FTX on September 30, 2025, which is estimated to total approximately $1.9 billion. This distribution is part of the ongoing NSE, referring to the bankruptcy proceeding and asset liquidation process.
