FTX Prepares $1.9B Creditor Windfall—Payouts Begin This September
Bankrupt crypto exchange FTX is finally putting its money where its mouth is—creditors are about to get paid.
The $1.9 billion payout marks a rare win in crypto's graveyard of collapsed empires. After years of legal wrangling, users burned by Sam Bankman-Fried's empire might finally recoup some losses.
Just don't call it a comeback—this is damage control, not a revival. The funds represent pennies on the dollar compared to 2022's vaporized fortunes. A sobering reminder that in crypto, even 'make whole' efforts come with asterisks.
September's distribution will test whether FTX's new handlers can do what SBF couldn't: handle money responsibly. The irony? This $1.9B Band-Aid is funded by the very assets the exchange once mismanaged.
Wall Street would call this 'returning to normalcy.' Crypto natives know better—it's just the latest chapter in the industry's ongoing rehab tour.
FTX Announces Next Repayment Date
This follows a court-approved MOVE to reduce the disputed claims reserve by $1.9 billion, unlocking more capital for immediate distribution.
Like previous repayments, FTX confirmed that BitGo, Kraken, and Payoneer will facilitate the payments. To receive their funds, creditors must complete KYC, submit tax forms, and onboard with one of the approved providers.
This marks thein 2025.
Some $470 million in disputed claims remain frozen for now, including funds linked to accounts in 49 countries. These will be addressed in future rounds, pending court decisions.
Restricted Jurisdictions
Made a quick video about the FTX hearing about the restricted jurisdictions motion
49 Countries are impacted
$470m FTX Claims
90 Objection letters were received pic.twitter.com/6xOXjP7iQw
Recap of FTX’s 2025 Repayments So Far
FTX began repayments earlier this year, aiming to return over $14.5 billion to creditors.
On February 18, FTX issued its first payout to Convenience Class claimants (claims under $50,000). These creditors received 100% of their original claim plus ~9% interest, calculated from the bankruptcy filing date.
On May 30, the exchange launched its second round, distributing over $5 billion across multiple claim classes.
The September 30 distribution will deliver funds to creditors who have resolved disputes and cleared legal or procedural hurdles.
FTX has emphasized thatwill be eligible. Claims that have been transferred must meet strict criteria and appear on the official register before the.
Meanwhile, FTX founder Sam Bankman-Fried remains incarcerated. He recently received a 4-year reduction in his sentence due to good behavior. Yet, Bankman-Fried will potentially be in prison until 2044.
However, Caroline Ellison, the former CEO of Alameda Research, is set for release on July 20, 2026.
