FTX Sets September 2025 Date for Third Creditor Distribution Amid Bankruptcy Proceedings

Bankrupt cryptocurrency exchange FTX is moving forward with its efforts to resolve creditor claims, announcing that the third round of distributions will begin on September 30, 2025, according to an October 24 report from CryptoBriefing. This next phase follows a decisive reduction of $1.9 billion in disputed claims reserves, equivalent to approximately KRW 2.6153 trillion, freeing up substantial funds for disbursement to creditors.

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Key Dates and Distribution Details

Preparations for this third distribution round are outlined in FTX’s July 23, 2023 statement, with several key dates and terms specified. The record date for creditor claims is set for August 15, 2025, including a broad scope of claims categorized as:

• Class 5 Customer Entitlements, representing funds owed to FTX customers.
• Class 6 General Unsecured Claims, which include non-customer creditor claims.
• New Convenience Claims, aimed at smaller creditors to streamline their reimbursement process.

These categories highlight FTX’s continued focus on equitable distribution while its bankruptcy proceedings unfold.

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Delaware Court Approval & $1.9 Billion Claim Reserve Reduction

FTX’s progress reached a key milestone with approval from the Delaware bankruptcy court to reduce disputed claims reserves from a staggering $6.5 billion to $4.3 billion, unlocking $1.9 billion for redistribution. This court-backed reduction represents a pivotal step in addressing creditor demands during one of the most significant financial collapses in cryptocurrency history. The freed-up funds will directly bolster the third round of creditor payments.

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Distribution Methodology and Creditor Requirements

To facilitate seamless payouts, FTX has partnered with noted platforms including BitGo, Kraken, and Payoneer. Creditors must complete various pre-distribution processes, such as:

• Know Your Customer (KYC) Verification to comply with regulatory standards.
• Tax Filings to ensure accurate reporting for distribution purposes.
• Platform Onboarding Procedures for streamlined payments on designated channels.

These measures aim to enhance transparency and security in the distribution process, ensuring that eligible creditors receive their allocated funds.

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Overview of FTX’s Distribution Progress

The upcoming September 2025 distribution will mark the third installment in FTX’s creditor reimbursement efforts. Key milestones so far include:

• The first distribution round launched February 18, 2023, focused on providing relief to smaller creditors.
• A second distribution round initiated on May 30, 2023, where $5 billion was disbursed to creditors.

FTX’s structured approach has helped stabilize one of the cryptocurrency industry's largest-ever bankruptcies, underscoring the company’s commitment to mitigating financial losses and rebuilding trust with affected customers and stakeholders.

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Closing Remarks

The September 2025 date for FTX’s third creditor distribution signals continued progress in its complex bankruptcy proceedings, with notable financial milestones and court approvals paving the way for resolution. By streamlining creditor reimbursement processes and leveraging industry partnerships, FTX is working to address the fallout from its historic collapse while restoring billions to creditors.

As one of the most high-profile corporate collapses in crypto history, FTX’s journey is closely watched by industry players and regulators alike, setting a precedent for handling insolvency within the cryptocurrency sector.