Bitcoin News Today: FTX to Distribute $1.9 Billion to Creditors on September 30 2025 Following $2.2B Reduction in Disputed Claims Reserve

FTX Trading Ltd. has announced a scheduled distribution of $1.9 billion to creditors on September 30, 2025, marking the third major payout under its ongoing bankruptcy reorganization plan. The funds, released following a court-approved reduction in the disputed claims reserve from $6.5 billion to $4.3 billion, will be allocated to holders of allowed claims, including Customer Entitlement Claims (Class 5), General Unsecured Claims (Class 6), and Convenience Claims. Creditors must meet a record date of August 15, 2025, and complete verification processes, such as submitting tax forms and undergoing know-your-customer checks, to qualify for the distribution [1].

The payment will be processed through BitGo, Kraken, and Payoneer, ensuring compliance with regulatory requirements for fund transfers. This step aligns with the broader reorganization plan confirmed by the Delaware Bankruptcy Court in October 2024, which aims to repay up to $16.5 billion in total claims. To date, the recovery trust has already distributed $6.2 billion in two tranches—$1.2 billion in February and $5 billion in May 2025—leaving approximately $10.3 billion to be allocated across future distributions [2].

The repayment framework has faced scrutiny over its valuation methodology, which bases claim calculations on crypto asset prices from November 2022, when Bitcoin (BTC) traded between $16,000 and $20,000. Despite the current market value of BTC exceeding $120,000, the court has upheld this historical pricing model to maintain consistency. This approach has led to lawsuits from some creditors seeking compensation at current market rates, though legal challenges have not altered the court’s stance [4].

Additional complications arise from efforts to reverse claims in jurisdictions where crypto transactions are restricted. The FTX Recovery Trust recently sought court approval to exclude creditors in regions such as China, Russia, Saudi Arabia, and Pakistan, citing local laws prohibiting crypto trading or fund transfers. Critics argue this disproportionately affects claimants in these areas, with some alleging that 82% of the value in restricted jurisdictions is tied to China [5]. The court has not yet ruled on this motion, but stakeholders warn of potential delays or disputes if exclusions are enforced.

The September 2025 payout represents a pivotal phase in FTX’s three-year bankruptcy process. While the recovery trust has returned $7.4 billion to creditors to date, including the latest $1.9 billion addition, challenges persist in balancing administrative efficiency with equitable treatment. The reliance on pre-bankruptcy valuations and jurisdictional exclusions has fueled debates over fairness, particularly as market conditions have evolved dramatically since FTX’s collapse in late 2022.

For creditors, the distribution offers partial resolution but leaves lingering questions about transparency and long-term accountability. The involvement of third-party processors like BitGo and Kraken introduces institutional oversight, yet the valuation model remains a contentious point. As the reorganization progresses, stakeholders will closely monitor the trust’s adherence to its outlined framework and its ability to address unresolved disputes without further legal delays.

Source:

[1] [FTX to Start Next Round of Creditor Repayments on Sept. 30] (https://www.coindesk.com/policy/2025/07/24/ftx-to-start-next-round-of-creditor-repayments-on-sept-30)

[2] [FTX Recovery Trust Reduces Disputed Claims Reserve by $2.2B] (https://www.ainvest.com/news/ftx-recovery-trust-reduces-disputed-claims-reserve-2-2b-release-1-9b-creditors-payouts-sept-30-2507/)

[4] [FTX Creditors to Receive Next Round of Payouts by Sept 30] (https://cryptoslate.com/ftx-creditors-to-receive-next-round-of-payouts-by-sept-30/)

[5] [FTX Sets August 15 as Record Date for Next Distribution] (https://www.fxstreet.com/cryptocurrencies/news/ftx-set-august-15-as-record-date-for-next-distribution-to-eligible-claim-holders-202507240714)