FTX Unlocks $1.9B for Creditor Distribution on Sept 30

The U.S. Bankruptcy Court has approved a major update to the FTX creditor distribution plan, reducing the disputed claims reserve from $6.5 billion to $4.3 billion and unlocking $1.9 billion for payouts. Under the revised reorganization plan, the next FTX creditor distribution is set to begin on September 30, 2025, with an August 15 record date for Class 5 customer entitlements, Class 6 general unsecured claims and select convenience claims. Distributions will be handled by BitGo, Kraken and Payoneer. Claimants must complete KYC verification, submit tax forms and register before the deadline to secure funds. This release follows the confirmed plan to repay up to $16.5 billion in principal plus 9% interest. Some creditors in China and Russia continue to challenge valuation methods that use November 2022 crypto prices instead of current market values. These developments mark a key step in the FTX bankruptcy proceedings, improving transparency, accelerating crypto recovery for users and reducing uncertainty for stakeholders.