Bitcoin News Today: FTX to Distribute $1.9B by 2025 as Court Approves Reduced Reserve, Sparks Bitcoin Valuation Controversy

FTX Trading Ltd. has received court approval to distribute $1.9 billion in customer and creditor payouts by September 30, 2025, following a reduction of its disputed claims reserve from $6.5 billion to $4.3 billion in a Delaware bankruptcy proceeding [1]. The funds will be allocated through BitGo, Kraken, and Payoneer under the supervision of the FTX Recovery Trust, with verified claims prioritized for disbursement. A key condition for eligibility is strict Know-Your-Customer (KYC) and tax verification, meaning unverified users may be excluded from receiving their share [1]. The record date for determining eligibility has been set for August 15, 2025 [2].

The payout mechanism, however, has sparked controversy. Repayments are calculated using November 2022 cryptocurrency prices, a decision that has drawn criticism from holders of assets like Bitcoin, which have surged by nearly 500% since that period. The use of outdated valuations has left many investors frustrated, with some noting the potential for a token dump to further depress market prices [1]. The timing of the distribution also coincides with heightened scam activity, prompting FTX to issue warnings about phishing attempts and unauthorized requests for wallet access [1].

While the release of $1.9 billion marks progress in the firm’s restructuring, uncertainties remain. A previously unstaked $31 million in Solana tokens—unveiled in earlier recovery plans—have not been confirmed as part of the payout, raising questions about their allocation [1]. Additionally, the exclusion of creditors from 49 countries, including China, has intensified debates about equitable treatment in the recovery process. Critics argue that the firm’s promise of “equal treatment” is being undermined by jurisdictional restrictions [1].

Market observers highlight the broader implications of the payout. The structured disbursement via fiat equivalents, rather than crypto assets, aims to mitigate volatility compared to past bankruptcy events like Mt. Gox. However, analysts caution that the impact on cryptocurrency demand will depend on how creditors reinvest their proceeds, emphasizing the need for cautious expectations [1]. The court-supervised model also sets a precedent for crypto bankruptcies, underscoring the importance of liquidity management and regulatory oversight in asset recovery [1].

Source:

[1] [FTX Creditors to Receive $1.9 Billion Payout by September 2025] [https://coinmarketcap.com/community/articles/6881ad62c5f9dd12659f984c/]

[2] [FTX Sets August 15 Record Date for Next $1.9B Creditor Distribution] [https://coincentral.com/ftx-sets-august-15-record-date-for-next-1-9b-creditor-distribution/]