FTX to Distribute $1.9 Billion to Creditors in September 2025 as Court Cuts Disputed Claims Reserve to $4.3 Billion

FTX Trading Ltd. has announced the resumption of creditor payouts on September 30, 2025, following a U.S. Bankruptcy Court in Delaware approving the release of $1.9 billion in funds for the third installment of its repayment plan [1]. This distribution, part of a broader reorganization strategy, brings total creditor payouts to $8.1 billion, with prior rounds of $1.2 billion in February and $5 billion in May. The court’s decision to reduce the disputed claims reserve from $6.5 billion to $4.3 billion has unlocked liquidity for the upcoming disbursement, which targets holders of Class 5 (Customer Entitlement Claims), Class 6 (General Unsecured Claims), and certain Convenience Claims [2]. Claimants must complete Know-Your-Customer (KYC) verification and submit tax documentation by August 15 to qualify [3].

The repayment structure reflects a surplus for most retail users, with 98% expected to receive at least 119% of their original claims based on November 2022 asset valuations [4]. This contrasts with the common outcome in crypto bankruptcies, where creditors typically recover less than 10% of their losses. However, the fixed valuation methodology—using 2022 prices for assets like Bitcoin (BTC) and Ethereum (ETH)—has drawn criticism. Some creditors argue that current market prices, which are significantly higher, should dictate payouts. The court has upheld the original valuation framework, leaving room for legal challenges [5].

Execution of the payout is managed by BitGo, Kraken, and Payoneer, which oversee verification and distribution. Geopolitical restrictions complicate the process, particularly in China, Russia, Ukraine, and Pakistan, where regulatory hurdles delay or block certain claims. FTX has warned that unverified claims risk forfeiture. The total repayment target remains $14.7–$16.5 billion, with insiders suggesting a final major round could occur by early 2026, contingent on asset liquidation and regulatory approval [6].

The FTT token, now trading at $1.42 with a $466 million market cap, remains speculative despite its detachment from the bankruptcy estate. The resumption of payouts marks a pivotal moment for FTX’s reorganization, which has already distributed $6.2 billion to creditors. While the case is rare for crypto bankruptcies in offering gains to users, ongoing disputes highlight the challenges of aligning static valuations with dynamic markets. Legal battles over asset pricing and jurisdictional restrictions are likely to persist as FTX navigates its three-year-long recovery.

Source:

[1] [FTX to begin $1.9B creditor payout on Sept. 30](https://crypto.news/ftx-creditor-payment-sept-court-frees-1-9b-2025/)

[2] [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)

[3] [FTX Distributes $1.9B to Creditors by Sept. 30, 2025 ...](https://www.ainvest.com/news/ftx-distributes-1-9b-creditors-sept-30-2025-court-approved-disputed-claims-cut-2507/)

[4] [FTX prepares third round of distributions as court frees up ...](https://cryptobriefing.com/ftx-next-distribution-record-date-september-2025/)

[5] [FTX Trading Ltd. has announced that it will resume creditor payouts...](https://nulltx.com/ftx-to-resume-creditor-payouts-sept-30-1-9b-approved-for-next-round/)

[6] [FTX to Distribute $1.9 Billion to Creditors in September ...](https://www.ainvest.com/news/ftx-distribute-1-9-billion-creditors-september-2025-court-approval-2507/)