FTX to Begin Next Round of Cash Payouts After Claims Reserve Cut by $1.9B

Key Points

1. FTX will start its next round of cash distributions to approved creditors on or around September 30, 2025, with the record date for eligible claimants set for August 15.

2. The Bankruptcy Court approved FTX's request to reduce its disputed claims reserve by $1.9 billion, from $6.5 billion to $4.3 billion.

3. Distributions will only be made to claimants who have completed Know Your Customer (KYC) verification by the August 15 record date.

4. A Chinese creditor representing over 300 users is opposing FTX's proposal to block payouts in certain jurisdictions, including China, which accounts for 82% of the $800 million in claims from 49 flagged jurisdictions.

5. FTX founder Sam Bankman-Fried is projected to be released from federal prison on December 14, 2044, after serving less than 21 years of his 25-year sentence for fraud related to the FTX collapse.