Court Approves $1.9 Billion Reserve Cut for FTX, Next Payouts Set for September - Crypto News Flash

• FTX will begin the next distribution round on September 30 after cutting disputed reserves by $1.9B.
• Eligible claims must be verified and listed by August 15 to receive funds via BitGo, Kraken, or Payoneer.

FTX has obtained court authorization to lower its disputed claims reserve by $1.9 billion, opening the door to its next round of creditor and customer payouts. The bankruptcy court of Delaware sanctioned the reduction, decreasing the total reserve by $6.5 billion to $ 4.3 billion.

The restructuring unlocks considerable funding, which will finance the third round of distribution of FTX. The official press release cites August 15, 2025, for the eligibility of claims. Payments shall commence on or about September 30. The distribution covers the Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and newly acknowledged Convenience Claims.

The distribution agents will include BitGo, Kraken, and Payoneer. FTX Recovery Trust will use these platforms to distribute the approved money. To qualify, claimants will have to undergo Know Your Customer (KYC) processes and provide tax records.

The court made a ruling after some of the claims were settled or disqualified, and the exchange was able to redistribute reserved assets. Although FTX has recently unstaked its $31 million holding in Solana (SOL) tokens, no official connection with the forthcoming distributions has been confirmed.

Verification Required as Transfers Face Strict Cutoff

FTX reiterated that only verified claims will be included in future distributions. Transferred claims have to be registered in the official list by August 15. A new claim owner who has not updated their details before the deadline misses the September payment.

After the provision of funds into the accounts of service providers, users are left to manage funds on their own. FTX reported that clients with problems with payments or access should contact Payoneer, BitGo, and Kraken directly.

The exchange also indicated that it will never request users to link their wallets or provide their personal keys. Users were cautioned to keep an eye out for malicious websites and phishing emails claiming to be the FTX Customer Portal.

The reduction in reserve levels is expected to speed up the repayment. The idea behind FTX is to direct distributions exclusively to legitimate holders, thereby minimizing delays caused by unresolved claims.

Over $14.5B in Repayments Targeted in 2025

The exchange began repayments earlier in 2025, aiming to give creditors back over $14.5 billion. FTX made its first customer distribution on February 18, paying out to Convenience Class claimants with less than $50,000 in claims. These claimants were fully paid for their claims, together with an interest of about 9% from the date of filing for bankruptcy.

The second payout occurred on May 30, sharing more than $5 billion in different classes. The September distribution will focus on the creditors that have overcome a legal or administrative obstacle and have registered as an official beneficiary.

Meanwhile, Backpack, a crypto platform, recently launched a marketplace where FTX creditors can sell their claims to interested buyers, providing an alternative path to liquidity for those unwilling to wait for future distributions.

FTX’s founder, Sam Bankman-Fried, remains in prison despite a four-year sentence reduction for good behavior. He is expected to remain incarcerated until 2044. Caroline Ellison, the former CEO of Alameda Research, is scheduled for release in July 2026.