FTX will distribute $1.9 billion in cash to eligible creditors by September 2025 as part of its bankruptcy reorganization plan approved by the U.S. Bankruptcy Court in Delaware. This initial payment targets holders of approved Class 5 (Customer Entitlement Claims), Class 6 (General Unsecured Claims), and specific Convenience Claims, with an eligibility cutoff date of August 15, 2025.
The payout forms part of a broader strategy to repay up to $16.5 billion, covering principal plus 9% interest for most non-governmental creditors. To qualify, claimants must complete mandatory KYC verification, submit tax documentation, and register by the August 15 deadline. Certain jurisdictions, including China, remain excluded from participation.
Notably, creditor repayments are calculated using cryptocurrency valuations from November 2022 when FTX filed for bankruptcy, reflecting prices substantially below current market levels. The bankruptcy estate now holds only a minimal fraction of original crypto assets despite recovering an estimated $16.5 billion in total assets, necessitating cash distributions instead of digital asset returns.