FTX's $1.9B Reserve Reduction Triggers Third Creditor Payout on Sep 30, 2025

FTX has set September 30, 2025, as the anticipated date for its third round of creditor distributions, following a Delaware court’s approval of a $1.9 billion reduction in the disputed claims reserve. The reserve, initially $6.5 billion, has been trimmed to $4.3 billion, with the released funds to be allocated to verified stakeholders [1]. The firm announced on July 23, 2025, that August 15, 2025, will serve as the record date for eligibility, covering claims from Class 5 Customer Entitlement, Class 6 General Unsecured, and newly added Convenience Claims [1]. This development marks a critical phase in FTX’s bankruptcy proceedings, enabling the return of liquidity to creditors while maintaining procedural integrity.

The court’s decision reflects progress in resolving the complexity of creditor claims, as the reduction in the reserve indicates increased confidence in verifying stakeholder entitlements. The freed capital will be distributed through FTX’s designated service providers—BitGo, Kraken, and Payoneer—requiring claimants to complete Know-Your-Customer (KYC) verification, submit tax documentation, and onboard to the platforms by the August 15 deadline [1]. This third distribution builds on earlier payouts, underscoring FTX’s commitment to resolving its obligations amid ongoing restructuring.

The use of multiple service providers highlights FTX’s strategy to streamline the payout process while adhering to regulatory standards. By leveraging established platforms, the firm aims to ensure broad accessibility for claimants, though the KYC and tax submission requirements may limit participation for unverified stakeholders [1]. The court’s oversight has been pivotal in balancing the urgency of distributing funds with the need to safeguard the bankruptcy process, setting a precedent for structured digital asset distributions in crypto-related insolvencies [1].

The release of $1.9 billion represents a tangible step in FTX’s restructuring timeline, yet challenges remain in fully resolving the intricate web of claims. The firm’s emphasis on transparency and regulatory compliance in the distribution process has drawn attention to the role of judicial oversight in managing such cases. As the September 2025 deadline approaches, the efficiency of the payout mechanism and clarity of communication for creditors will be critical in shaping the outcome of this phase.

This development aligns with broader trends in cryptocurrency bankruptcies, where courts are increasingly adopting frameworks to address digital asset distributions. The FTX case has provided a case study in balancing speed and accuracy in stakeholder payouts, with the latest reserve adjustment offering insights into the evolving landscape of crypto insolvency proceedings [1].

Source: [1] [title: FTX prepares third round of distributions as court frees up ...] [url: https://cryptobriefing.com/ftx-next-distribution-record-date-september-2025/]