FTX’s bankruptcy proceedings are set to reach another milestone as the collapsed crypto exchange prepares its next round of creditor repayments at the end of September 2025 – nearly three years since its dramatic downfall in late 2022.
According to an update published on July 23, repayments will commence on or around September 30 for approved claimants in Class 5 (Customer Entitlement Claims), Class 6 (General Unsecured Claims), and certain Convenience Claims. To qualify, creditors must be properly registered, have submitted tax forms, and have completed know-your-customer verification by the record date of August 15.
FTX today announced that the anticipated record date for the Next Distribution is August 15, 2025. Read more details here: https://t.co/pQ4SUq9XPn
— FTX (@FTX_Official) July 23, 2025
This upcoming distribution follows a recent Delaware bankruptcy court decision that reduced FTX’s disputed claims reserve from $6.5 billion to $4.3 billion. As a result, the exchange was allowed to release approximately $1.9 billion in additional liquidity to creditors.
FTX’s designated Distribution Service Providers – BitGo, Kraken, and Payoneer – will oversee the payout process.
The repayment plan, confirmed in October 2024, authorizes FTX to distribute up to $16.5 billion, covering full principal plus 9% interest for most non-governmental creditors. However, legal complexities persist, especially in jurisdictions such as China and Russia, which account for around $470 million in claims. Payouts in these regions remain restricted due to regulatory barriers, prompting some creditors to threaten legal action over their exclusion from these opportunities.
Another source of dissatisfaction among creditors is FTX’s repayment valuation model. Claims are being settled based on crypto asset prices at the time of the exchange’s bankruptcy filing in November 2022, when Bitcoin was trading between $16,000 and $20,000.
With Bitcoin now hovering near $120,000 and other cryptocurrencies similarly surging, many creditors feel their repayments do not reflect the market’s recovery. Several have filed lawsuits arguing they are entitled to current market values under FTX’s terms of service, but courts have so far upheld the original dollar-based approach.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
