FTX Drops $1.9 Billion Bomb: Creditor Payout Set for September 30

Bankrupt crypto exchange FTX just handed creditors a lifeline—and a deadline. Mark your calendars for September 30, when the firm unleashes its next $1.9 billion distribution phase.

The move comes as the defunct trading platform scrambles to clean up its apocalyptic mess. While creditors might cheer the cash infusion, skeptics note it’s just pocket change compared to the billions vaporized during FTX’s implosion.

Pro tip: Don’t spend it all on memecoins this time.

TLDR

• FTX will begin its next round of creditor repayments on September 30, 2025, after court approval
• A U.S. bankruptcy court freed up $1.9 billion by reducing FTX’s disputed claims reserve from $6.5 billion to $4.3 billion
• The exchange has already repaid nearly $6.2 billion to creditors since starting distributions earlier this year
• Creditors must complete verification and register by August 15, 2025 to qualify for the September payout
• Repayments are based on November 2022 crypto values when Bitcoin was around $16,000-$20,000, frustrating creditors who see current higher prices

FTX will distribute another round of payments to creditors starting September 30, 2025, the bankrupt crypto exchange announced Wednesday. The collapsed platform has already returned nearly $6.2 billion to creditors since beginning repayments earlier this year.

The September distribution became possible after a U.S. bankruptcy court in Delaware approved the release of $1.9 billion in additional funds. The court reduced FTX’s disputed claims reserve from $6.5 billion to $4.3 billion, freeing up the extra cash for creditor payments.

Creditors holding approved Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and certain Convenience Claims will be eligible for the upcoming distribution. The record date to qualify for payments is set for August 15, 2025.

FTX will process the payments through three distribution service providers: BitGo, Kraken, and Payoneer. Claimants must complete know-your-customer verification procedures and submit required tax forms by the August deadline to receive their funds.

The September payout represents continued progress in FTX’s bankruptcy proceedings, which began after the exchange collapsed in November 2022. Sam Bankman-Fried, the exchange’s founder and former CEO, was convicted in 2023 on seven counts of fraud and conspiracy.

Court Approves Expanded Distribution Plan

The court’s October 2024 confirmation of FTX’s reorganization plan allows for repayment of up to $16.5 billion total. The plan includes full principal plus 9% interest for most non-governmental creditors.

Despite the progress, some regions face restrictions on receiving payouts due to legal and regulatory concerns. China and Russia account for almost $470 million in claims that may face exclusions from distributions.

Some creditors are considering legal action over these regional exclusions. Legal objections continue to be raised regarding various aspects of the payout process.

Valuation Disputes Continue

FTX calculates repayments based on cryptocurrency values from November 2022, when the exchange filed for bankruptcy. At that time, Bitcoin traded between $16,000 and $20,000 per coin.

Bitcoin now trades around $120,000, creating frustration among creditors who believe they deserve payments based on current market values. Other cryptocurrencies have also posted substantial gains since the 2022 bankruptcy filing.

Several claimants have filed lawsuits arguing they should receive payments based on current market values according to FTX’s original terms of service. The bankruptcy court has maintained its dollar-based valuation model despite these challenges.

When FTX collapsed, the exchange had lost nearly all customer-held cryptocurrency. Reports indicate only 0.1% of Bitcoin and 1.2% of ethereum remained available at the time of bankruptcy.

The September 30 distribution date provides a concrete timeline for creditors who have waited nearly three years since FTX’s collapse. Registration and verification requirements must be completed by the August 15 deadline for creditors to receive their payments.