Court Approves $1.9B Reserve Release, Enabling FTX Distribution

Highlights

Court approves $1.9 billion reserve release, enabling FTX's next customer distribution.
August 15 record date set, payouts could happen by September 30, 2025.
FTX warns of scams, confirms KYC verification requirement to secure claim payouts.

FTX has secured court approval to reduce its disputed claims reserve by $1.9 billion, This move will release significant funds for the next round of customer and creditor distributions. The reserve cut, approved by the Delaware bankruptcy court, reduces the total claims reserve from $6.5 billion to $4.3 billion.

FTX Sets August 15 Record Date, Eyes September 30 Payouts

According to the press release, FTX stated that the next record date for eligible claims will be August 15, 2025. Payments for allowed claims are expected to begin on or around September 30, 2025. This timeline applies to Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and newly allowed Convenience Claims.

The reduction in reserves clears the way for faster and broader payouts to customers and unsecured creditors. Distributions will be handled through BitGo, Kraken, and Payoneer, the designated service providers working with the FTX Recovery Trust.

FTX clarified that only verified claim holders will receive distributions. Claimants must complete Know Your Customer (KYC) verification and submit their tax documents to qualify.

For transferred claims, distributions will only be paid if the new owner is listed in the official claims register before the August record date. The court-approved reduction was made possible after certain claims were resolved or disqualified.

This allowed FTX to reallocate previously reserved assets. Previously, FTX unstaked $31 million worth of Solana tokens but there has been no confirmation from FTX regarding the purpose of the unstaked funds.

Firm Warns of Scams Ahead of Payouts

Meanwhile, FTX also emphasized that it will never ask users to connect wallets or share private keys. The company warned customers to stay alert for phishing emails and fake websites posing as the FTX Customer Portal.

Also, once distributions are sent to the selected provider accounts, customers will be responsible for their own funds. Any questions regarding account access or payment status must be directed to BitGo, Kraken, or Payoneer, depending on each individual’s chosen provider.

At the next wave of payments, thousands of FTX claimants may finally begin to receive a portion of their funds. As CoinGape reported, a crypto exchange Backpack recently launched a new platform to allow FTX creditors to sell their debt claims.

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Paul

Paul Adedoyin is a crypto journalist with 4+ years experience who provides timely news, in-depth research, and insightful content to inform and empower his audience. His works have been featured on sites such as CryptoMode, CryptoNewsFlash among others. He holds a degree in Geophysics from OAU, Nigeria. When he's not writing, he loves watching soccer and reading educative journals. He can be reached via [email protected]

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