FTX Creditors Get Relief as Reserve Drops by $1.9B

• FTX has reduced its claims reserve by $1.9 billion, clearing funds for the next round of distributions.

• Customers with verified claims must complete KYC and submit tax documents before the August 15 deadline.

• Payouts are expected to begin on or around September 30 and will be handled by BitGo, Kraken, and Payoneer.

FTX has received court approval to reduce its disputed claims reserve by $1.9 billion, unlocking significant capital for upcoming customer and creditor distributions. The decision, granted by the Delaware bankruptcy court, lowers the total reserve from $6.2 billion to $4.3 billion.

The company announced that the new record date for eligible claims is August 15, 2025. Payments for allowed claims are scheduled to begin on or around September 30, 2025. This timeline applies to Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and Convenience Claims recently approved by the court.

Distributions to Begin Through BitGo, Kraken, and Payoneer

Following the reserve reduction, FTX confirmed that distributions will be processed through its designated providers: BitGo, Kraken, and Payoneer. Only verified claim holders will receive funds. To qualify, users must complete KYC procedures and submit required tax documentation.

Payments will only be issued for transferred claims if the new claim owner is listed on the official claims register before the August 15 record date. FTX clarified that the reserve cut was made possible after several claims were resolved or disqualified, freeing up blocked assets for redistribution.

The move allows FTX to expand the pool of recipients in the next round of disbursements. Previously, the firm also unstaked $31 million worth of Solana (SOL) tokens. However, it has not disclosed whether these funds will be used for distributions.

FTX Warns of Scams Ahead of Customer Payouts

FTX strongly warns customers about rising scam activity as the payout date approaches. The company will never request users to connect wallets or disclose private keys. Users are urged to avoid phishing links and fake websites impersonating the FTX Customer Portal.

Once distributions are released to provider accounts, customers will be responsible for managing their funds. Any payment or account access issues must be directed to the specific service provider handling the payout, BitGo, Kraken, or Payoneer.

This upcoming wave of payments marks a key moment in FTX’s ongoing recovery process. Thousands of claimants may soon begin receiving partial repayments of their lost funds. Meanwhile, some FTX creditors are exploring alternative options, including platforms like Backpack, which recently launched a marketplace for selling verified claims.