Defunct crypto exchange FTX has announced that it will start distributing the next batch of creditor claims on September 30.
This is after the bankruptcy court granted permission for it to reduce its disputed claims by $1.9 billion.
Disputed Claims Reserve Slashed by $1.9B
In a July 23 press release, FTX revealed that the next disbursement date for eligible demands will be on August 15, 2025. Payments are expected to begin on or around September 30, 2025. This timeline applies to Class 5 Customer Entitlement, Class 6 General Unsecured, and newly allowed Convenience Claims.
It also announced that it had received authority from the bankruptcy court to reduce the disputed claims reserve from $6.5 billion to $4.3 billion. The adjustment releases cash to be given to holders of approved demands in the upcoming round. However, it did not say precisely how much would be handed out in the exercise.
Payments will be made through BitGo, Kraken, and Payoneer, the designated service providers working with the FTX Recovery Trust.
The bankrupt exchange clarified that only verified claim holders will receive funds. To qualify, individuals must complete Know Your Customer (KYC) verification and submit required tax documents. For transferred entitlements, distributions will only be made if the new owner is listed in the official register before the August record date.
As of July 2025, FTX has returned approximately $6.2 billion to former customers across two major rounds, including $1.2 billion in February and $5 billion in May.
The overall repayment plan aims to distribute between $14.7 billion and $16.5 billion, with recoveries varying based on claim type and valuation. Around 98% of the creditors are expected to receive at least 119% of their claims based on the value at the time of the bankruptcy.
Legal Action From Chinese Creditors
Elsewhere, the FTX Recovery Trust lodged a motion on July 4 seeking court approval to implement a plan that could potentially deny repayments to customers in 49 “restricted jurisdictions.” Among the countries flagged are China, Russia, Saudi Arabia, and Pakistan, with China alone accounting for 82% of the $800 million in disputed claims.
The proposal has gotten a lot of backlash, particularly from Chinese creditors, with one individual, Weiwei Ji, filing an objection on behalf of over 300 users, arguing that the motion is legally unfounded and discriminatory.
Ji, who holds $15 million in verified claims, says Chinese users should not be penalized due to regulatory assumptions. He pointed to legal pathways through Hong Kong and noted that, despite trading restrictions, crypto is recognized as legal property in the country.
