FTX’s bankruptcy estate will begin a $1.9 billion payout to creditors starting September 30, marking the next major step in its repayment plan. This upcoming distribution follows earlier rounds in February ($1.2B) and May ($5B), making it the third and one of the most anticipated repayments in the ongoing FTX bankruptcy saga.
Record Date Set for August 15
According to the FTX Recovery Trust, eligible claims will be finalized based on records as of August 15. The funds for this new round come from a reduction in disputed claim reserves — from $6.5 billion to $4.3 billion — authorized by the bankruptcy court. This adjustment released $1.9 billion for immediate redistribution.
China and “Restricted Jurisdictions” Likely Excluded
While the payout is good news for many, some creditors will likely be excluded, particularly those from China and other restricted jurisdictions, according to creditor advocate Sunil Kavuri.
“Their claims have not been allowed yet and are unlikely to be allowed by the record date,” .
A motion to freeze payouts to 49 jurisdictions due to legal concerns around local crypto laws was expected to be ruled on July 22. However, the court instead granted FTX more time to revise its framework after receiving over 90 creditor objections.
Court Orders More Clarity Before Freezing Claims
At the recent hearing, the judge declined to rule on the original motion. Instead, FTX was told to rewrite the proposal and create a clear and workable process that allows creditors to appeal their jurisdiction classification.
“The motion, as filed, is not feasible,” said creditor Weiwei Ji, who attended the hearing virtually. “They must provide a detailed framework to reclassify restricted jurisdictions.”
This delay means many affected creditors may remain in limbo while others begin receiving payouts.
What’s Next for FTX Creditors
As the FTX bankruptcy process continues, more distributions are expected, with funds released gradually as disputed claims are resolved. The estate has yet to respond publicly to recent developments, including concerns over fairness and transparency in how claims are classified.
For creditors with approved claims, September may bring long-awaited relief. But for those in flagged jurisdictions, the path to repayment remains uncertain.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.