FTX to Begin $1.9B Repayments in September

FTX will distribute $1.9 billion to creditors on September 30, excluding claims from disputed jurisdictions such as China, as allowed claims are finalized.

Third distribution round announced by FTX

Bankrupt crypto exchange FTX has scheduled its third major creditor repayment. According to an official statement from FTX Trading and the FTX Recovery Trust, a $1.9 billion payout will begin on September 30, covering allowed claims only.

This follows previous disbursements of $1.2 billion in February and $5 billion in May. The funds for the September round were unlocked after a court approved reducing the disputed claims reserve from $6.5 billion to $4.3 billion, freeing $1.9 billion for eligible creditors.

Disputed jurisdictions and ongoing legal delays

However, some claims remain unresolved. Creditor Sunil Kavuri stated the upcoming payment will “almost certainly” exclude claimants from China and other flagged countries listed in the restricted jurisdictions motion.

The record date for eligible claims is set for August 15. Any claims not approved by then will be excluded from this distribution.

On July 22, a bankruptcy court hearing was expected to address these restricted jurisdictions. However, instead of issuing a final ruling, the judge instructed FTX to revise its motion to include clearer procedures for reclassifying jurisdictions from restricted to eligible.

The updated motion is expected to provide a more transparent framework for affected creditors.