Delaware bankruptcy court has approved a $1.9 billion distribution to creditors of the collapsed cryptocurrency exchange FTX, with payments set to begin Sept. 30, 2025. The court designated Aug. 15, 2025, as the record date for eligible creditors.
The distribution, the third major payout in 2025, follows a reduction in FTX’s disputed claims reserve from $6.5 billion to $4.3 billion, freeing up funds for approved claims. Eligible creditors include those with Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and certain Convenience Claims approved after prior distributions.
Creditors must complete KYC verification, submit tax forms, and onboard with distribution providers such as BitGo, Kraken, or Payoneer to receive payments. The funds are based on asset values from November 2022, when FTX filed for bankruptcy, not current cryptocurrency prices, prompting criticism from some creditors who argue they are disadvantaged by receiving cash instead of crypto amid rising market values.
FTX previously distributed $800 million to smaller creditors in February and $5 billion in May. The estate has recovered between $14.7 billion and $16.5 billion to address $11.2 billion in creditor claims, with 98% of creditors expected to receive at least 118% of their claims.
The case continues to unfold as FTX navigates the complex process of resolving outstanding claims.
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