Delaware Court Approves $1.9B FTX Reserve Release, 30% Reduction in Disputed Claims for Creditors

A Delaware court has approved the release of $1.9 billion from FTX’s disputed claims reserve, marking a pivotal development in the cryptocurrency exchange’s ongoing bankruptcy proceedings. The reserve, previously held at $6.5 billion, will now be reduced to $4.3 billion, with the freed capital earmarked for the third round of creditor distributions. The decision, announced in July 2025, sets an August 15 eligibility date and a September 30 payout deadline for creditors. The funds will be distributed through BitGo, Kraken, and Payoneer, with the process overseen by FTX Trading Ltd. and the FTX Recovery Trust [1][2][4].

The court’s ruling reflects confidence in FTX’s ability to manage remaining disputes efficiently. By lowering the reserve, the court aims to expedite returns to creditors while retaining a buffer for unresolved claims. This adjustment aligns with the platform’s broader strategy to balance liquidity with obligations, a critical factor in maintaining creditor trust amid prolonged legal proceedings. FTX’s bankruptcy estate, which has navigated complex regulatory and legal challenges since its 2022 collapse, now holds $4.3 billion in disputed claims reserves, a 30% reduction from earlier this year [2][4].

The approved distribution is the first major milestone since FTX finalized its third allocation plan. Creditors who received payouts in the 2024 second round will now have another chance to recover assets, though the timeline extends by two years compared to earlier distributions. The September 30 deadline provides a clear endpoint, though delays in crypto bankruptcies remain common due to regulatory hurdles and market volatility. FTX’s legal team emphasized that the court prioritized transparency and fairness in the process, underscoring the structured approach to fund allocation [1][3].

Analysts note that the reserve release could influence perceptions of cryptocurrency bankruptcy frameworks. FTX’s restructuring has set precedents for handling digital asset liquidations and creditor rights, with this step potentially serving as a model for future cases. However, the two-year gap between distributions highlights the complexities of allocating funds in crypto bankruptcies, where regulatory uncertainty and market fluctuations complicate asset management [2]. The court’s decision also underscores Delaware’s role as a key jurisdiction for high-profile crypto cases. FTX’s Chapter 11 filing there has drawn global scrutiny, with this reserve adjustment signaling the court’s proactive oversight of a fair liquidation process.

The $1.9 billion release, while a significant sum, represents only a fraction of the estimated $100 billion in customer deposits FTX once held. The next distribution offers a tangible outcome after years of legal maneuvering, but challenges persist. Unresolved claims and potential market shifts could still affect the value of distributed assets. FTX’s focus on returning value to creditors remains a focal point for stakeholders, with the court’s approval indicating progress toward finalizing key obligations [1][3].

Source: [1] [Court Approves $1.9B Reserve Release, Enabling FTX ...](https://coingape.com/court-approves-1-9b-reserve-release-enabling-next-ftx-distribution/) [2] [FTX prepares third round of distributions as court frees up ...](https://cryptobriefing.com/ftx-next-distribution-record-date-september-2025/) [3] [FTX Sets August 15 Record Date for Next $1.9B Creditor ...](https://coincentral.com/ftx-sets-august-15-record-date-for-next-1-9b-creditor-distribution/) [4] [FTX Sets Next Distribution Date Following Disputed Claims ...](https://www.prnewswire.com/news-releases/ftx-sets-next-distribution-date-following-disputed-claims-reserve-reduction-302512444.html)