FTX to Pay $1.9B to Creditors on Sept. 30 2025 After Court Approval

FTX Trading Ltd. has announced a $1.9 billion payout to creditors on September 30, 2025, following a U.S. bankruptcy court’s approval to release funds previously reserved for disputed claims [1][2]. The distribution, described as the third installment in the crypto exchange’s recovery plan, marks a critical step in resolving its financial restructuring. The court’s decision reduced the disputed claims reserve, freeing liquidity to prioritize verified creditors who completed Know Your Customer (KYC) compliance by August 15 [4][5]. This process involves the FTX Recovery Trust and service providers such as BitGo, Kraken, and Payoneer [3].

The payout aims to address lingering debts from FTX’s collapse in late 2022, with creditors facing challenges due to crypto valuations being fixed at November 2022 prices. Some stakeholders have expressed dissatisfaction, as this valuation method could result in reimbursements lower than expected [6]. The court’s intervention reflects a balance between expediting verified claims and managing unresolved disputes, which previously delayed distributions. Sunil Kavuri, a creditor representative, noted that claims remain under review, with legal motions addressing jurisdictional restrictions still pending [7].

Market analysts highlight the potential for this payout to influence the broader crypto landscape. While the $1.9 billion allocation represents a significant portion of FTX’s recovery efforts, it remains a fraction of the firm’s total liabilities, which exceed tens of billions. The success of this round depends on administrative efficiency, as delays in verification processes could erode trust in the recovery framework [9]. The timeline also aligns with FTX’s efforts to navigate international regulatory complexities, with reports suggesting a reassessment of payment restrictions in certain jurisdictions [7].

The court’s decision underscores systemic challenges in the crypto industry, drawing parallels to historical cases like Mt. Gox, where creditors faced prolonged delays and valuation discrepancies. FTX’s restructuring mirrors these patterns, with creditors likely to adjust to prolonged settlement processes and reduced market participation during the transition [6]. Analysts caution that future distributions may face constraints if new disputes arise or the pool of verified claims expands, despite the court’s current confidence in the approach [9].

The September 2025 payout represents a pivotal moment in FTX’s liquidation process, emphasizing the interplay between judicial oversight and operational execution. By prioritizing verified claims and reducing reserves for disputed cases, the company seeks to restore stakeholder confidence while navigating a complex global recovery.

Sources:

[1] [FTX to Start Next Creditor Payout in September Following Court Approval](https://cryptopotato.com/ftx-to-start-next-creditor-payout-in-september-following-court-approval/)

[2] [FTX Announces September 30 Date for Next $1.9 Billion](https://coincentral.com/ftx-announces-september-30-date-for-next-1-9-billion-creditor-distribution/)

[3] [FTX to distribute $1.9B to creditors in September 2025 after court reduces disputed claims reserve](https://www.ainvest.com/news/ftx-distribute-1-9b-creditors-september-2025-court-reduces-disputed-claims-reserve-1-9b-2507/)

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

[5] [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)

[6] [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)

[7] [FTX is set to begin creditor payouts on September 30, 2025](https://www.mitrade.com/insights/news/live-news/article-3-981961-20250724)

[9] [FTX to Begin Next Round of Creditor Repayments in September](https://defi-planet.com/2025/07/ftx-to-begin-next-round-of-creditor-repayments-in-september/)