FTX to Distribute $1.9B in September 30 Payout After Court Cuts Disputed Claims Reserve to $2.3B from $4.3B

FTX Trading Ltd. (d/b/a FTX.com) and the FTX Recovery Trust have announced that August 15, 2025, will serve as the record date for the next phase of creditor payouts, with distributions expected to commence on September 30, 2025. This marks the third repayment under the FTX Recovery Trust’s liquidation framework, which oversees the distribution of assets from the collapsed cryptocurrency exchange. Eligible claimants must meet the August 15 deadline to qualify for a $1.9 billion allocation, processed via BitGo, Kraken, and Payoneer [2]. The update follows a U.S. Bankruptcy Court in Delaware approving a nearly $2 billion reduction in the disputed claims reserve, lowering it from $4.3 billion to $2.3 billion [4]. This adjustment aims to accelerate the payout schedule by reallocating funds to verified claims, though challenges remain in resolving disputes over claim validity and geographic restrictions.

The revised timeline highlights the complexities of distributing assets from FTX’s liquidation. The FTX Recovery Trust emphasized that the September 30 distribution is contingent on fulfilling regulatory requirements, including compliance with sanctions and anti-money laundering protocols. Restrictions on payments to high-risk jurisdictions—such as those previously identified in earlier distributions—continue to complicate the process, potentially excluding some creditors [3]. The court-approved reserve reduction has been lauded as a step toward equitable distribution but criticized for potentially undervaluing unresolved claims [4].

The involvement of BitGo, Kraken, and Payoneer underscores the reliance on traditional financial infrastructure to manage the technical logistics of the payout. These partners will verify claimant eligibility and execute transfers, reflecting broader efforts to bridge crypto and fiat systems for transparency and regulatory compliance [5]. For creditors, the August 15 deadline creates urgency to submit or finalize claims. Those who missed earlier distribution windows must act swiftly to avoid further delays, as the FTX Recovery Trust has outlined detailed guidelines for compliance with the record date.

Legal battles persist, particularly regarding the interpretation of the bankruptcy estate’s scope, which could influence future distributions. While proponents view the current pace as a balanced approach between speed and accuracy, critics argue unresolved disputes may prolong the process [6]. The FTX liquidation remains a landmark case in cryptocurrency insolvency, with its outcomes likely shaping future frameworks for handling crypto bankruptcies. Unique challenges, including digital asset valuation and cross-border regulations, underscore the need for standardized protocols. For now, the focus remains on executing the September 30 payout while navigating the intricate legal and logistical landscape [1].

Source: [1] [title1] [https://www.prnewswire.com/news-releases/ftx-sets-next-distribution-date-following-disputed-claims-reserve-reduction-302512444.html] [2] [title2] [https://bravenewcoin.com/insights/ftx-prepares-1-9-billion-creditor-payout-as-legal-battles-over-restricted-countries-continue] [3] [title3] [https://cointelegraph.com/news/ftx-distribute-1-9-billion-court-approval-cut-disputed-claims] [4] [title4] [https://www.ainvest.com/news/ftx-distribute-1-9-billion-creditors-september-2025-court-cuts-disputed-claims-reserve-4-3-billion-2507/] [5] [title5] [https://www.fxstreet.com/cryptocurrencies/news/ftx-set-august-15-as-record-date-for-next-distribution-to-eligible-claim-holders-202507240714] [6] [title6] [https://cryptoslate.com/ftx-creditors-to-receive-next-round-of-payouts-by-sept-30/]