FTX Allocates $1.9B to Creditors After Disputed Claims Reserve Reduction

FTX Trading Ltd. (d/b/a FTX.com) and the FTX Recovery Trust have established August 15, 2025, as the critical record date for the third round of creditor payouts, with distributions expected to commence on September 30 of the same year. The announcement, confirmed via court-approved adjustments, marks the release of $1.9 billion in funds to verified claimants, following a $2 billion reduction in the disputed claims reserve [1]. This allocation, managed by BitGo, Kraken, and Payoneer [2], reflects progress in one of the most high-profile cryptocurrency bankruptcy cases, where legal disputes over claim validity had previously delayed distributions. The FTX Trustee emphasized strict adherence to the August 15 deadline, stating no exceptions will be made for late submissions [3].

The reduction of the disputed claims reserve accelerates the repayment process by redirecting funds from legal contingency reserves to verified creditors [4]. This shift prioritizes resolving claim authenticity over prolonged litigation, a strategy aimed at streamlining the liquidation of FTX’s remaining assets. The U.S. Bankruptcy Court in Delaware approved the updated reserve allocation in early July, underscoring regulatory oversight in the distribution process [5].

From a procedural standpoint, the involvement of third-party payment processors introduces operational efficiency but also potential risks, such as cross-border transaction delays or technical challenges during the payout phase [6]. The FTX Trustee has yet to address contingency plans for such scenarios, leaving some uncertainty over the timeline. Despite these concerns, the $1.9 billion payout represents a significant liquidity injection for creditors, though the extended timeline highlights the complexity of managing claims across a global user base.

Legal battles over jurisdictional restrictions and claim authenticity have historically slowed distributions, but the reserve reduction signals a shift toward prioritizing verified claims. This approach could establish a precedent for future cryptocurrency bankruptcies, where balancing speed with accuracy is critical to maintaining stakeholder trust. As the September 30 deadline nears, creditors are urged to monitor updates from the FTX Recovery Trust and the appointed payment processors to ensure compliance with eligibility requirements [7].

Source:

[1] [PR Newswire] [https://www.prnewswire.com/news-releases/ftx-sets-next-distribution-date-following-disputed-claims-reserve-reduction-302512444.html]

[2] [Cointelegraph] [https://cointelegraph.com/news/ftx-distribute-1-9-billion-court-approval-cut-disputed-claims]

[3] [CryptoSlate] [https://cryptoslate.com/ftx-creditors-to-receive-next-round-of-payouts-by-sept-30/]

[4] [Brave New Coin] [https://bravenewcoin.com/insights/ftx-prepares-1-9-billion-creditor-payout-as-legal-battles-over-restricted-countries-continue]

[5] [AInvest] [https://www.ainvest.com/news/ftx-distribute-1-9-billion-creditors-september-2025-court-cuts-disputed-claims-reserve-4-3-billion-2507/]

[6] [TradingView] [https://www.tradingview.com/news/coindar:ba54b74dd094b:0-ftx-sets-record-date-for-next-creditor-distribution-on-august-15/]

[7] [FXStreet] [https://www.fxstreet.com/cryptocurrencies/news/ftx-set-august-15-as-record-date-for-next-distribution-to-eligible-claim-holders-202507240714]