What happened?
FTX, a bankrupt crypto exchange, has announced that it will start its next cash distribution round to creditors around September 30, 2025. Creditors who are eligible must have their claims recorded by August 15, 2025. The court has approved a $1.9 billion reduction in disputed claims reserve, which allows more funds to be available for distribution.
Who does this affect?
This development primarily affects creditors of FTX, which includes holders of Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and approved Convenience Claims. To receive the payouts, claimants need to complete KYC verifications, submit tax forms, and use one of the designated platforms: BitGo, Kraken, or Payoneer. In addition, those with transferred claims must ensure their transfers are registered by the record date.
Why does this matter?
The payout plan is significant for the cryptocurrency market as it reflects FTX’s steps towards resolving its bankruptcy situation and provides some financial restitution to its creditors. This move can potentially restore some confidence in crypto markets, as it shows a structured approach to debt resolution. However, the controversy surrounding restrictions in some jurisdictions could impact perceptions and legal proceedings in the crypto space moving forward.