The bankrupt cryptocurrency exchange FTX announced the next phase of fund distribution for creditors, scheduled for September 30, 2025. A Bankruptcy Court in Delaware has allocated $1.9 billion for this purpose, made possible by reducing the reserve for disputed claims from $6.5 billion to $4.3 billion. The deadline for claimholders is set for August 15, 2025. This marks the third major round of payments in 2025, emphasizing progress in the company's restructuring.
The payments will cover holders of approved Class 5 (Customer Entitlement Claims), Class 6 (General Unsecured Claims), and newly approved Convenience Claims, who either did not receive funds in previous rounds or were recently court-approved. Creditors must complete KYC procedures, provide tax documents, and register on distribution platforms (BitGo, Kraken, or Payoneer) by August 15 to participate. FTX specifically stresses that disputed or unregistered claims will not be included in this round.
FTX has already paid creditors around $6.2 billion out of the total $14.7–16.5 billion outlined in the reorganization plan approved in October 2024. The company estimates that about 98% of creditors with claims of $50,000 or less will receive at least 119% of their claim amount, calculated based on cryptocurrency prices at the time of bankruptcy in November 2022. However, this asset valuation approach is controversial: many creditors insist on using current market prices, given Bitcoin's value increase from $16,000–$20,000 in 2022 to ~$120,000 in 2025. Nonetheless, the court supported the valuation model based on November 2022 prices.
Despite significant progress, around $470 million in disputed claims remain frozen, including accounts from 49 jurisdictions such as China, Russia, and Pakistan. These claims will be addressed in future rounds following court rulings. Some creditors, including Chinese representative Weiwei Ji, oppose payout restrictions in certain jurisdictions, considering them unfair. Additionally, FTX faces challenges in managing creditor expectations, who are frustrated by the inability to receive compensation considering the current growth in the cryptocurrency market.
Successfully completing the September payment round could strengthen trust in FTX's restructuring process and set a precedent for other major bankruptcies in the crypto industry, such as Mt. Gox. However, ongoing disputes over asset valuation methodology and jurisdictional restrictions highlight the complexity of resolving such cases. Analysts note that transparency and timely payments will be key to restoring FTX's reputation and stabilizing the market.