- FTX to begin third $1.9B creditor payout on September 30 after court approval
- Creditors must verify KYC and file tax forms by August 15 to receive funds
- Disputed claims reserve cut by $2.2B, expanding eligible payouts for verified claims
FTX Trading Ltd., the bankrupt crypto exchange, is gearing up for its third round of creditor distributions, set to begin on September 30, 2025. The distribution, totaling $1.9 billion, will benefit holders of approved claims under FTX’s ongoing Chapter 11 bankruptcy case.
The move follows a significant legal development on July 23, when a Delaware court authorized a major reduction in the company’s disputed claims reserve freeing up substantial funds for eligible creditors.
Court Clearance Paves Way for Expanded Payouts
The court ruling allows FTX to cut its disputed claims reserve from $6.5 billion to $4.3 billion. Consequently, this unlocks $1.9 billion that will now be included in the upcoming disbursement. This financial release significantly increases the scope of payouts, especially for verified claimants who had been waiting for resolution.
The distribution applies to Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and Convenience Claims approved since earlier payout dates. Notably, the record date for determining eligible claims is set for August 15, 2025. Claimants must appear on the official claims register with all documentation and verification finalized before this date.
Steps Required to Receive Payment
To receive funds, claimants must complete Know Your Customer (KYC) verification, submit all necessary tax forms, and onboard with one of FTX’s designated Distribution Service Providers, BitGo, Kraken, or Payoneer. These providers will handle the disbursement process directly to approved accounts.
However, claimants must act swiftly and cautiously. Transfers of claims must be recorded and cleared by the record date, with a 21-day notice period completed and no objections raised. Only transferees listed on the official register by August 15 will qualify for the payout.
Security Measures and Advisory for Claimants
As the distribution date approaches, FTX has issued a strong warning regarding phishing attacks. Fraudulent emails and scam websites may attempt to impersonate official communications. FTX has reminded creditors that it will never ask them to connect digital wallets or share sensitive information via email.
Besides the upcoming round, FTX has already executed two distributions earlier this year one in February and a $5 billion round in May. The September round marks another critical step in the exchange’s effort to return customer funds and rebuild trust.
