FTX Approves $4.3B Payout Plan After Claims Reserve Cut

The defunct crypto exchange FTX has officially announced that the anticipated record date for the subsequent distribution phase is August 15, 2025. This will include verified Class 5 and Class 6 claimants, as well as Convenience Claim holders who have been approved in previous rounds but have not yet received payouts.

The announcement disclosed that the subsequent distribution phase is scheduled to begin near the end of Q3, with an estimated start date of September 30, 2025. 

Bankruptcy Court Approves $1.9B Reserve Reduction

According to the latest update, the collapsed exchange has confirmed that BitGo, Kraken, and Payoneer will facilitate the subsequent distribution as official service providers. While the next distribution date is scheduled, FTX disclosed that it has secured approval from the Bankruptcy Court to reduce the reserve for disputed claims by $1.9 billion. This lowers the total from $6.5 billion to $4.3 billion. 

Additionally, the adjustment will free up additional funds for distribution to holders of approved claims in the upcoming disbursement. The announcement further noted that several information holders of allowed claims should take note. The report stated that distributions will be limited to those with verified claims who have completed all necessary pre-distribution steps.  

Following the transfer of distribution payments from FTX to a designated Distribution Service Provider account, the recipient is responsible for managing and securing those funds. 

Furthermore, in cases involving claim transfers, payments will only be made to the new owner if the transfer has been approved, recorded in the official system, and no objections have been raised during the 21-day waiting period preceding the next record date.  

KYC and Tax Forms Required  

The collapsed exchange urged customers and creditors to complete their Know Your Customer (KYC) verification. It also requested that they submit the required tax forms and onboard with the exchanges mentioned above.  

Before the scheduled distribution date, crypto exchange Backpack launched a dedicated service enabling FTX creditors to transfer their debt claims to qualified third-party purchasers. According to the firm, it is a non-profit, completely neutral debt sale channel. 

The platform’s rollout aims to mitigate the residual impact of the 2022 FTX insolvency on the broader crypto community. The exchange’s reported $14.5 million financial loss during the incident catalyzed the development of this support mechanism. 

Meanwhile, crypto platforms BitGo and Kraken announced the distribution of approximately $5 billion in payouts to former users of the collapsed exchange. The payment marks a key step in the second phase of the company’s ongoing Chapter 11 restructuring plan.

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