FTX Payouts on the Horizon: Billions Set to Flow to Creditors!

FTX creditors, mark your calendars! The FTX Recovery Trust announced its next major distribution, with payouts expected to begin around September 30. This much-anticipated round signifies a significant step towards restitution for those impacted by the exchange's late 2022 collapse. The record date for this distribution is August 15, setting a clear cutoff for eligible recipients. This covers allowed Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and certain Convenience Claims recently allowed. In a crucial development, the estate secured court approval to reduce its disputed claims reserve by a massive $1.9 billion, shrinking it from $6.5 billion to $4.6 billion. This directly frees up substantial additional cash for upcoming distributions, which will be administered by industry leaders BitGo, Kraken, and Payoneer. Creditors must act swiftly: only those clearing all pre-distribution requirements—including Know Your Customer (KYC) checks, tax form submissions, and full platform onboarding—will receive funds. Claim transfers must also be processed and reflected on the official register by the August 15 record date. This payout marks another critical milestone in FTX's complex recovery journey, following months of reconciliation and asset sales. It builds upon previous distributions, like the nearly $5 billion paid on May 30. Importantly, the FTX Trust reiterates it will never ask creditors to connect wallets for verification or reimbursement – a vital security reminder. The road to recovery continues, bringing relief closer for thousands.