The Delaware court has approved a reduction of $1.9 billion from FTX’s dispute reserve fund, decreasing it from $6.5 billion to $4.3 billion. The released funds will be used to pay creditors during the ongoing bankruptcy proceedings.
According to a notification from the FTX Recovery Trust, this refund will be allocated to three main groups of creditors:
- Group 5: Customers who deposited funds on the FTX exchange.
- Group 6: Unsecured creditors.
- Convenience Group: Small claims, typically under $50,000.
To receive the payment, creditors must complete the following steps by August 15, 2025:
- Identity verification (KYC).
- Tax declaration.
- Register an account with one of the distribution partners: BitGo, Kraken, or Payoneer.
Payments are expected to begin transferring to recipients starting September 30, 2025.
For claims that have been sold or transferred to third parties, two mandatory conditions must be met to qualify for payment:
- The transfer transaction must be recorded in the official register before August 15, 2025.
- No party may dispute the transfer transaction within 21 days from the update.
If these two conditions are not fully met, the reimbursement claims may be temporarily suspended or excluded from the distribution. This process aims to ensure transparency and protect the rights of all parties, especially those who purchase claims from the secondary market.
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FTX emphasizes that once the funds are transferred to platforms like BitGo, Kraken, or Payoneer, the responsibility for managing accounts and retrieving balances lies entirely with the recipient. FTX will not be liable if users lose access to their accounts due to personal errors.
The FTX Recovery Trust warns users to be cautious of scams, particularly phishing emails requesting wallet connections or access to unofficial portals. The organization asserts that FTX will never request wallet keys or access to personal wallets.
This is the third distribution in the FTX bankruptcy process:
- February 18, 2025: Round 1, disbursing $1.2 billion to creditors with claims under $50,000.
- May 30, 2025: Round 2, distributing $5 billion to various creditor groups.
- September 30, 2025: Round 3, releasing an additional $1.9 billion.
Despite facing a large-scale bankruptcy and a significant number of creditors, FTX’s repayment progress is assessed by experts as being swift, transparent, and exceeding initial expectations.
