FTX Creditors to Receive $1.9 Billion in Fiat by Sept 30 2025

FTX Trading Ltd. has announced a pivotal milestone in its bankruptcy proceedings, with creditor payouts totaling $1.9 billion slated to begin on September 30, 2025, pending final court approval. The distribution, overseen by the FTX Recovery Trust, will involve BitGo, Kraken, and Payoneer as third-party agents, focusing on fiat-based settlements in USD equivalents. Claims must be registered by August 15, 2025, to qualify for this round, which primarily addresses Class 5 Customer Entitlement and Class 6 General Unsecured Claims. Notably, the payout excludes crypto-based transactions, aligning with the trust’s strategy to minimize market volatility by avoiding on-chain activity. This approach contrasts with previous high-profile crypto insolvencies, such as Mt. Gox, where crypto settlements exacerbated price fluctuations. The absence of former FTX executives in the restructuring process underscores the court’s emphasis on accountability, with legal and financial advisors guiding the distribution.

The $1.9 billion disbursement represents a significant step in resolving the firm’s $6.2 billion in total liabilities, though $4.3 billion in reserves remain allocated for future claims. Historical patterns suggest a measured approach to payout rounds, ensuring liquidity for subsequent creditor classes. Analysts highlight that fiat-based distributions reduce the risk of regulatory scrutiny and market destabilization, factors that have historically complicated crypto bankruptcy cases. The current framework also mitigates potential conflicts with blockchain protocols, preserving operational continuity for the FTX platform.

While the immediate impact on crypto markets is anticipated to be muted, the announcement reinforces credibility in the restructuring process. Creditor confidence has remained fragile since FTX’s collapse in 2022, with past delays and disputes over asset allocation eroding trust. This structured payout schedule, coupled with transparent third-party involvement, aims to restore faith in the recovery timeline. The absence of crypto settlements in this phase aligns with broader regulatory trends favoring fiat-centric operations to streamline compliance.

The FTX Recovery Trust’s strategy reflects lessons from prior crypto bankruptcies, including Mt. Gox’s protracted liquidation and the challenges of cross-jurisdictional asset management. By prioritizing fiat-based, on-time distributions, the trust appears to prioritize creditor satisfaction over speculative market interventions. However, the remaining $4.3 billion in reserves will require careful allocation, particularly as future rounds may involve more complex claim categories. The success of this initiative hinges on maintaining operational efficiency and avoiding regulatory roadblocks, which could delay subsequent distributions.

Source: [1] [FTX Creditors to Receive $1.9 Billion by September 2025] [https://coinmarketcap.com/community/articles/6881b33ecdd3e84fefeeda64/]