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Home - News - FTX Launches New Fund Distribution After $1.9 Billion Reserve Release

News

FTX Launches New Fund Distribution After $1.9 Billion Reserve Release

The bankrupt exchange, FTX, will begin payments on September 30 through authorized partners such as BitGo, Kraken, and Payoneer.

Oladapo Timothy
Last updated: October 14, 2025 8:27 am
Oladapo Timothy
Published: October 14, 2025
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FTX Launches New Fund Distribution After $1.9 Billion Reserve Release
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FTX has officially announced that it will start the next round of creditor reimbursements beginning September 30, 2025. The eligibility cutoff date for beneficiaries has been set to August 15.

This new distribution phase will involve holders of approved claims in the categories of Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and Convenience Claims that were approved after the last payment cycle. According to the statement released on July 23, payments will be processed exclusively through the designated distribution partners: BitGo, Kraken, and Payoneer.

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To access reimbursements, claimants must complete Know Your Customer (KYC) verification, submit the required tax documentation, and register with one of the three authorized distribution platforms.

$1.9 Billion Reduction In Dispute Reserves

A turning point in the process came with the Bankruptcy Court’s approval to reduce the reserve for disputed claims from $6.5 billion to $4.3 billion, thereby freeing up $1.9 billion in additional liquidity. This extra amount can be used for the next tranche of payments to already approved creditors.

To date, the exchange has returned approximately $6.2 billion to creditors after obtaining court approval for the redistribution plan.

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ByOladapo Timothy
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An expert, trader and writer with extensive experience of digital assets, covering everything related to the burgeoning crypto industry — from price analysis to Blockchain disruption. I have authored more than 2,000 stories for crypto and fintech media outlets. I am particularly interested in regulatory trends around the globe that are shaping the future of digital assets.
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