FTX to Release $1.9B in Disputed Debt Reserves on Sep 30
FTX has scheduled a compensation distribution on September 30 to release $1.9 billion from its disputed debt reserves. This tranche covers Class 5 customer claims, Class 6 general unsecured claims and newly approved convenience claims, following a court order that cut the disputed-claims reserve from $6.5 billion to $4.3 billion. Approved creditors must complete KYC, submit tax forms and select a payment channel (BitGo, Kraken or Payoneer) by the August 15 registration deadline. Transfers of claims need to be finalized before the deadline, subject to a 21-day objection period. Once funds arrive at the service providers, creditors assume custody. This move marks a key milestone in FTX’s asset recovery, demonstrating transparency in the compensation distribution process and helping to restore confidence among creditors and the wider cryptocurrency market.
Bullish
The scheduled release of $1.9 billion in disputed debt reserves represents significant progress in FTX’s bankruptcy and asset recovery process. In the short term, this compensation distribution may reduce selling pressure from creditors and shore up market sentiment around FTX. Over the long term, transparent handling of disputed debt reserves and clear deadlines for claims registration are likely to rebuild trust among institutional and retail participants, setting a positive precedent for future settlements in the broader cryptocurrency sector.