FTX Sets July 31 for First Creditor Payouts, Files Revised Plan to Free Up $600 Million

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FTX Sets July 31 for First Creditor Payouts, Files Revised Plan to Free Up $600 Million

FTX has confirmed that its next round of creditor distributions will begin on July 31, marking a significant milestone in the bankrupt exchange’s long-running reorganization. The record date for eligibility is set for June 16, the company announced in a recent update.

Payout Schedule and Eligibility Requirements

Eligible recipients include holders of approved FTX customer claims and equity holders. Payments to preferred stock holders will follow the same timeline. Before receiving funds, creditors must complete several administrative steps: pass Know Your Customer (KYC) verification, submit required tax documentation, and register an account with one of three designated distribution partners — BitGo, Kraken, or Payoneer.

For holders of approved NFT customer claims, the distribution process opens earlier, on June 30. These claimants will also need to complete the same compliance requirements before receiving any funds.

Revised Court Plan Reduces Claims Reserve

In a parallel development, FTX has submitted an amended plan to the bankruptcy court proposing to reduce its disputed claims reserve by approximately $600 million — from $2.4 billion down to $1.8 billion. If approved by the court, the freed-up cash would be redirected to fund the upcoming payout round.

The reduction signals growing confidence in FTX’s ability to resolve outstanding disputes and streamline its asset recovery process. It also suggests that the estate has made meaningful progress in validating and settling contested claims since the initial reserve was established.

What This Means for Creditors

For creditors who have been waiting since the exchange’s collapse in November 2022, the July 31 date provides the clearest timeline yet for receiving a portion of their frozen assets. However, the requirement to complete KYC and tax steps before the record date means that creditors should act promptly to avoid delays.

The use of third-party distribution platforms — BitGo, Kraken, and Payoneer — indicates FTX’s intent to ensure secure and compliant disbursement, while also reducing the operational burden on the estate.

Conclusion

FTX’s announcement of a concrete payout date and its revised court plan represent important steps forward in the bankruptcy process. While the timeline is now clearer, creditors must still complete the required verification steps to receive their funds. The court’s decision on the reduced claims reserve will be a key factor in determining the final payout amounts.

FAQs

Q1: When will FTX start paying creditors?
FTX has announced that distributions will begin on July 31, with a record date of June 16 for eligibility.

Q2: What do I need to do to receive my FTX payout?
You must complete KYC verification, submit tax documents, and register an account with BitGo, Kraken, or Payoneer before the record date.

Q3: How much has FTX reduced its disputed claims reserve?
FTX has proposed reducing the reserve by approximately $600 million, from $2.4 billion to $1.8 billion, pending court approval.

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