FTX to Initiate Next Payment to Creditors in September, Following Court's Endorsement
In a significant development, the FTX repayment plan has received U.S. bankruptcy court approval for the next creditor distribution, scheduled to commence on September 30, 2025. This upcoming round will distribute approximately $1.9 billion, freed by the court’s reduction of the disputed claims reserve from $6.5 billion to $4.3 billion.
The distribution targets key creditor classes, including Class 5: Customer Entitlement Claims, Class 6: General Unsecured Claims, and certain Convenience Claims. These classes generally cover retail customers and unsecured creditors. To qualify for the payment, creditors must complete necessary know-your-customer (KYC) verification and submit tax documentation by August 15, 2025.
Payments will be processed through trusted platforms such as BitGo, Kraken, and Payoneer. This round adds to prior repayments of nearly $6.2 billion earlier in 2025, making total payouts close to $8.1 billion thus far. The overall repayment target ranges between $14.7 billion and $16.5 billion, with expectations of a final major round by early 2026 depending on liquidation outcomes.
Repayments are based on November 2022 cryptocurrency valuations, when Bitcoin was approximately $16,000–$20,000. While most retail creditors are expected to recover at least 119% of their original claims on this basis, some creditors have criticized using outdated prices instead of current higher market prices.
This repayment plan marks continued progress in FTX’s bankruptcy liquidation following its collapse in late 2022. The court’s reduction of the disputed claims reserve represents progress in resolving legal issues and unlocking funds for creditors. However, some jurisdictions like China have claims excluded or frozen, pending regulatory review.
As the next distribution date approaches, eligible creditors are encouraged to complete the necessary verification and documentation processes to ensure they receive their share of the payout. The FTX repayment plan continues to provide a pathway towards recovery for affected parties.
- The upcoming distribution on September 30, 2025, will utilize platforms like BitGo, Kraken, and Payoneer for processing, bringing the total repayments from FTX close to $8.1 billion in crypto assets.
- While most retail creditors are anticipated to recover at least 119% of their original claims, some have expressed concerns about using November 2022's cryptocurrency valuations, as current market prices are significantly higher.
- The FTX repayment plan, moving forward with regulated practices and DEFIs (Decentralized Finance) within the blockchain industry, aims to provide a solution for trading business and finance-related issues arising from the company's collapse in late 2022.
