FTX Recovery Trust Plans $4.3 Billion Distribution to Approved Claimants on September 30 Amid Ongoing Claim Verification Challenges

• Bankruptcy Court approved a $4.3B payout to FTX creditors after reducing disputed claims by $1.9B ahead of the September 30 distribution.

• Claimants must pass the August 15 record date with an approved claim status and complete KYC checks to qualify for the upcoming payout.

• Creditors from restricted jurisdictions, including China, Russia, Ukraine, and Pakistan, remain excluded from this distribution, totaling $470M in claims.

FTX Recovery Trust is distributing $4.3 billion to approved claimants on September 30. Ensure you meet eligibility criteria for a successful claim.

What is the FTX Recovery Trust Distribution?

The FTX Recovery Trust distribution refers to the planned payout of $4.3 billion to approved claimants following a Bankruptcy Court ruling. This distribution will occur on September 30, 2025, and is contingent on claimants meeting specific eligibility requirements.

How Does the Claim Process Work?

Claimants must complete know-your-customer (KYC) checks and verify their claim status by the August 15 record date. Only those with approved claims will receive funds. The distribution includes holders of Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and remaining Convenience Claims.

Frequently Asked Questions

What are the eligibility requirements for the FTX distribution?

Claimants must have an approved claim status and complete KYC checks by the record date of August 15 to qualify for the distribution.

Why are some claimants excluded from the distribution?

Claimants from restricted jurisdictions, including China, Russia, Ukraine, and Pakistan, are excluded due to regulatory constraints, totaling around $470 million in claims.

Key Takeaways

• Distribution Date: September 30, 2025, for approved claimants.
• KYC Checks Required: Claimants must complete KYC checks to qualify.
• Restricted Jurisdictions: Claimants from certain countries are excluded from receiving funds.

Conclusion

The upcoming FTX Recovery Trust distribution of $4.3 billion is a critical development for creditors. Eligible claimants must ensure they meet all requirements, including KYC checks, to receive their funds. As the situation evolves, staying informed will be essential for all stakeholders.

FTX Recovery Trust to distribute $4.3B to approved claimants on September 30 after Bankruptcy Court ruling, excluding unverified and restricted claims.

• Bankruptcy Court approved a $4.3B payout to FTX creditors after reducing disputed claims by $1.9B ahead of the September 30 distribution.
• Claimants must pass the August 15 record date with an approved claim status and complete KYC checks to qualify for the upcoming payout.
• Creditors from restricted jurisdictions, including China, Russia, Ukraine, and Pakistan, remain excluded from this distribution, totaling $470M in claims.

FTX will distribute $4.3 billion to approved claimants on September 30 following a bankruptcy court decision to finalize disputed claims. The court reduced the approved claims reserve by $1.9 billion, paving the way for the upcoming payout. The record date for determining eligible recipients is today, August 15.

Only claimants who pass today’s record date and have an allowed claim status will be included in the September distribution. This payout covers holders of Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and remaining Convenience Claims. FTX creditor advocate Sunil urged claimants to confirm their claim status without delay.

Disputed and Unverified Claims Remain Pending

Creditors with unresolved or disputed claims will not be part of this distribution. The FTX Recovery Trust confirmed that pending claims will remain on hold until resolution. These creditors will need to pursue further legal steps before any payout.

Claimants must complete pre-distribution know-your-customer checks and register with authorized distribution providers such as BitGo, Kraken, and Payoneer. Those who fail to meet these requirements will not receive funds.

Tax Documents and Restricted Jurisdictions

The FTX Recovery Trust will deny payments to claimants who did not submit the required tax forms by today’s deadline. Creditors from restricted jurisdictions are also excluded. China has the largest number of affected claimants, followed by Russia, Ukraine, and Pakistan. Funds tied to these jurisdictions total around $470 million.

Some creditors have opted to sell their claims through exchanges like Backpack Exchange, Figure Market, Claims Market, and X claim. While these transfers often include extra fees, they provide faster liquidity to financially strained creditors.

The FTX Recovery Trust continues to review disputed claims, and developments in regulatory conditions may eventually open access to restricted creditors. Political and market stability could influence the timeline for broader distributions.