FTX Cuts Disputed Claims Reserve by $1.9B Unleashes New Creditor Payouts on Sept 30 2025

The FTX Recovery Trust has announced that creditors will receive a new round of distributions starting on September 30, 2025, following court approval to reduce the disputed claims reserve by $1.9 billion. The move, confirmed in a statement on July 23, allows the trust to allocate additional funds to eligible creditors who meet specific criteria, including completion of Know Your Customer (KYC) checks and submission of tax forms. The August 15, 2025 record date marks the cutoff for claims eligibility, with only those who have resolved prior distribution requirements qualifying for the payout [1].

The distribution will target holders of allowed Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and Convenience Claims not yet paid. BitGo, Kraken, and Payoneer have been designated as administrators for the process, ensuring compliance with regulatory standards while managing transfers. The trust emphasized that once funds are transferred to a chosen provider, account management and support responsibilities shift to the platform [2].

This development follows a $5 billion repayment to creditors in May 2025, the second major payout after an initial distribution in February. The May round focused on claims of $50,000 or less, with 9% annual interest accrued since FTX’s November 2022 bankruptcy filing. The latest adjustment to the disputed claims reserve—reducing it from $6.5 billion to $4.6 billion—reflects ongoing efforts to prioritize confirmed claims amid prolonged litigation and reconciliation efforts. The trust noted that transfers of claims remain contingent on assignments being finalized and reflected in the official register by the August 15 deadline [3].

Analysts highlight that while the $1.9 billion disbursement marks significant progress, it constitutes only a fraction of FTX’s total obligations. The collapse of the exchange in late 2022 remains one of the most complex insolvency cases in financial history, with creditors still awaiting full repayment. The reduction in the disputed claims reserve underscores a strategic shift toward resolving confirmed claims, though challenges persist in balancing stakeholder interests and addressing unresolved disputes [4].

The FTX saga continues to underscore systemic risks in the cryptocurrency sector. Its collapse triggered a market-wide crisis, exposing vulnerabilities in governance, liquidity, and regulatory oversight. The structured distribution process, involving third-party administrators and court oversight, highlights the necessity of robust frameworks to mitigate risks in decentralized finance. However, the prolonged resolution timeline also raises questions about the efficiency of current bankruptcy procedures in handling crypto-related insolvencies [5].

Creditors must remain vigilant in fulfilling pre-distribution requirements to ensure eligibility. The trust reiterated that claims must be fully processed and reflected in the official register by August 15, with no objections pending after a 21-day challenge period. Failure to meet these deadlines could result in delayed or denied payouts, emphasizing the need for timely compliance [6].

The next phase of FTX’s repayment plan demonstrates the ongoing complexity of its insolvency proceedings. While the reduction in the disputed claims reserve provides immediate liquidity, the broader resolution of claims and legal disputes will likely extend into future rounds. The involvement of third-party processors and court-approved adjustments signals a measured approach to distributing assets equitably, though the final outcomes remain subject to the resolution of remaining legal challenges.

Source:

[1] [FTX Disburses 1.9B to Creditors on Sept 30 as Reserve Cuts Free Funds](https://www.ainvest.com/news/ftx-disburses-1-9b-creditors-sept-30-reserve-cuts-free-funds-2507/)

[2] [FTX to begin $1.9B payouts in September as claims no longer disputed](https://www.tradingview.com/news/cointelegraph:4e26af97c094b:0-ftx-to-begin-1-9b-payouts-in-september-as-claims-no-longer-disputed/)

[3] [FTX To Pay Creditors $1.9B After Claim Dispute Cut](https://cointelegraph.com/news/ftx-distribute-1-9-billion-court-approval-cut-disputed-claims)

[4] [FTX Sets Next Distribution Date Following Disputed Claims Reserve Reduction](https://www.prnewswire.com/news-releases/ftx-sets-next-distribution-date-following-disputed-claims-reserve-reduction-302512444.html)

[5] [FTX to Begin $1.9B Distribution to Creditors by September 30](https://www.fxleaders.com/news/2025/07/24/ftx-to-begin-1-9b-distribution-to-creditors-by-september-30-2025/)

[6] [FTX Creditors to Receive More Payouts: Here is How to Claim](https://www.bitrue.com/blog/ftx-creditors-to-receive-more-payouts-how-to-claim)