FTX Trading Ltd. announced a $1.6 billion payout to its creditors, scheduled for September 30, 2025, as part of its Chapter 11 bankruptcy proceedings.
These distributions address creditor claims under court supervision, stirring debate over valuation dates and fueling further legal challenges amid existing market volatility.
FTX will distribute $1.6 billion to creditors on September 30, 2025. This forms part of court-approved Chapter 11 plans following its 2022 bankruptcy.
The distribution under the FTX Recovery Trust follows a reduction in disputed claims. The payout, handled by BitGo, Kraken, and Payoneer, reflects a decrease in reserved funds from $6.5B to $4.3B.
Muted Market Response to USD-Based Payout
Market response has been muted due to the payout’s USD basis, not in crypto. This lowers the expected financial impact, especially for major assets like BTC and ETH.
Creditors remain frustrated with payouts based on bankruptcy-era valuations. Claims from China and restricted regions remain contested within U.S. legal proceedings.
FTX and Mt. Gox: Echoes of Delayed Payouts
The FTX payout mirrors Mt. Gox’s scenario, where delayed repayments occurred under historical price settings. Such cases often lead to prolonged legal challenges.
Experts suggest prolonged legal proceedings will follow as stakeholders seek updated valuations. Market observers note minor effects on current liquidity due to USD settlement of claims.
Sunil Kavuri, FTX Creditor Advocate: “The upcoming $1.9 billion distribution will nearly certainly exclude creditors in China and other countries flagged in a motion on restricted jurisdictions. Their claims have not been allowed yet and are unlikely to be allowed by the record date on Aug. 15.”
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