FTX Initiates $1.9 Billion Creditor Payout on Sep. 30, 2025, Approved by Delaware Court

FTX Trading Ltd. has announced the initiation of a $1.9 billion creditor payout, approved by a Delaware Bankruptcy Court ruling and set to occur on September 30, 2025. The distribution, part of the ongoing restructuring of the FTX Recovery Trust, will be processed through BitGo, Kraken, and Payoneer, focusing on fiat-based settlements for creditor claims. This move marks a significant step in resolving FTX’s bankruptcy proceedings, as the company allocates held reserves to address outstanding obligations [1].

The payout will target creditors who hold "allowed claims" and meet specific pre-distribution requirements, as outlined in a public notice from FTX. By channeling funds through established financial service providers, the firm aims to streamline the process and ensure compliance with regulatory frameworks. The decision to use fiat transactions rather than cryptocurrencies reduces exposure to market volatility, offering creditors a more stable and predictable form of compensation [1].

Financial analysts note that this distribution underscores FTX’s commitment to restructuring while addressing immediate liquidity needs. The $1.9 billion injection is expected to partially satisfy customer entitlements, providing relief to affected parties amid the company’s prolonged insolvency process. The court’s approval to lower reserve holdings has expedited the timeline for creditor compensation, signaling a structured approach to debt resolution [1].

Regulatory oversight remains a critical factor in shaping the distribution strategy. The use of BitGo, Kraken, and Payoneer reflects FTX’s alignment with third-party platforms capable of handling large-scale fiat settlements. This choice also aligns with court-mandated requirements to minimize operational risks during the payout phase. The court’s ruling highlights a prioritization of creditor interests, ensuring that funds are allocated efficiently to mitigate further financial instability [1].

Looking ahead, FTX’s restructuring team has indicated that future distributions may follow a similar framework, contingent on ongoing legal and regulatory developments. The current payout sets a precedent for how cryptocurrency firms can navigate bankruptcy proceedings while maintaining transparency with stakeholders. Analysts suggest that the success of this initiative could influence broader industry practices in handling large-scale insolvencies [1].

The announcement has been framed as a milestone in FTX’s recovery efforts, balancing legal obligations with operational efficiency. By leveraging fiat-based transactions and trusted service providers, the firm aims to rebuild trust among creditors and regulators. The September 30 payout represents not only a financial milestone but also a demonstration of the resilience of structured legal frameworks in complex insolvency cases [1].

Source:

[1] [FTX Initiates $1.9 Billion Creditor Payout on Sep. 30](https://coinmarketcap.com/community/articles/6881f7362bc37507b2e68edd/)