Michaela
Summary: When will FTX begin its next round of payouts to creditors?
FTX plans to start its next phase of cash distributions around September 30, 2025, following a court-approved $1.9 billion reduction in disputed claims reserves. Payments will be made to verified creditors who have completed necessary KYC, tax documentation, and registration with approved distribution partners. This marks continued progress in repaying those affected by FTX’s collapse.
FTX, the now-defunct crypto exchange, has announced it will begin the next phase of cash distributions to its approved creditors. This step marks continued progress in the complex process of repaying those affected by the company’s collapse.
According to an official statement, the next round of cash distributions is expected to commence around September 30, 2025, with the record date for eligible claimants set for August 15.
These payments will include holders of approved claims categorized under Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and Convenience Claims that have been verified since the previous distribution phase.
Payments to approved claimants will be facilitated through FTX’s appointed distribution partners: cryptocurrency exchange Kraken, digital asset custodian BitGo, and international payment platform Payoneer.
Additionally, FTX secured court approval to lower its disputed claims reserve by $1.9 billion, a move that releases additional funds and enables the next round of distributions to eligible creditors.
FTX clarified that only claimants who have fulfilled specific requirements, including completing Know Your Customer (KYC) verification, registering with one of the approved distribution platforms, and submitting the required tax documentation, will be eligible to receive payments in the upcoming round of distributions.
FTX Faces Backlash Over Payout Restrictions
Despite FTX’s recent progress in initiating repayments, the process has drawn criticism from numerous claimants.
Earlier in the month, Chinese creditor Weiwei Ji formally challenged a motion by the FTX Estate seeking to block distributions to individuals in regions where cryptocurrency activity faces legal or regulatory restrictions.
In a recent court filing, creditor Ji notified Judge Karen Owens that although they are a legal resident of Singapore, their Chinese passport places them under the “Restricted Jurisdiction” category outlined by the FTX Estate. Ji’s objection was submitted both individually and on behalf of a collective representing more than 300 Chinese creditors involved in the FTX bankruptcy case.
The FTX Estate filed a motion requesting court approval to suspend distributions to individuals residing in jurisdictions deemed legally restricted. The July 2 filing argued that proceeding with payouts in these areas could expose the FTX Recovery Trust to serious legal repercussions. These include potential fines, personal liability for trustees and executives, and even criminal penalties, depending on local regulatory frameworks.
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Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
