FTX to Distribute $1.9B to Creditors on Sept. 30 as U.S. Court Cuts Disputed Claims Reserves by $1.9B

FTX Trading Ltd. announced plans to distribute $1.9 billion to creditors on September 30, 2025, following a U.S. bankruptcy court’s approval to reduce disputed claims reserves by $1.9 billion, from $6.5 billion to $4.3 billion. This marks the third such payout since February 2025, with prior distributions totaling over $3 billion. The funds will be allocated to verified claimants through third-party administrators, including BitGo, Kraken, and Payoneer, after creditors submit documentation by August 15. The FTX Recovery Trust, overseeing the process, aims to accelerate repayments while maintaining a buffer for potential claim challenges [1][2].

The distribution reflects a strategic shift by the court to prioritize liquidity for verified creditors, with approximately 70% of initial claims already resolved. By reclassifying $1.9 billion in disputed assets as non-disputed, the estate streamlines reimbursements while addressing jurisdictional challenges previously limiting payouts. The move also aligns with broader efforts to revise payout restrictions for accounts in formerly designated “problem countries” [5]. However, the total recovery rate remains below 40% of outstanding claims, with unresolved disputes and regulatory investigations continuing to hinder further distributions [7].

Market participants anticipate moderate impacts as creditors receive funds, potentially increasing exchange inflows of BTC and ETH. Past distributions saw similar movements, though no significant price fluctuations are expected currently. The timing of the payout—ahead of a potential regulatory decision on FTX’s remaining assets—may influence investor sentiment, though analysts emphasize the limited immediate market impact due to the distributed amount’s fraction of total liabilities [8].

The third payout underscores the complexity of FTX’s multiyear restructuring, which has faced delays from legal disputes and market volatility. Creditors, including institutions and individual users affected by the 2022 collapse, will receive funds via platforms requiring KYC and tax documentation. As a BitGo representative noted, claimants must ensure compliance with these procedures for a smooth process [4].

The court’s decision to adjust reserves raises broader questions about balancing speed and due diligence in crypto insolvencies, where asset tracing remains challenging. While the move accelerates liquidity for verified parties, it highlights the tension between expediting recovery and maintaining safeguards against fraudulent claims. The FTX case continues to serve as a testbed for regulatory frameworks in a sector prone to rapid market shifts and opaque asset tracking [8].

Sources:

[1] [FTX to Begin $1.9B Payout in September, Third Distribution…](https://www.ainvest.com/news/ftx-1-9b-payout-september-distribution-claims-reserves-cut-4-3b-2507/)

[2] [FTX Sets $1.9B Third Payout After Reserve Cut](https://coinpaper.com/10142/ftx-to-roll-out-third-wave-of-creditor-payments-after-reserve-reduction)

[4] [FTX Cuts Disputed Claims Reserve by $1.9B Unleashes…](https://www.ainvest.com/news/ftx-cuts-disputed-claims-reserve-1-9b-unleashes-creditor-payouts-sept-30-2025-2507/)

[5] [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)

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

[8] [FTX launches new fund distribution after $1.9 billion…](https://atlas21.com/ftx-launches-new-fund-distribution-after-1-9-billion-reserve-release/)