- FTX to distribute $1.9 billion to creditors by September 30.
- U.S. court reduces disputed claims reserve to $4.3 billion.
- Creditor dissatisfaction due to outdated asset valuations.
FTX’s third major creditor payout of $1.9 billion will begin September 30, 2025, impacting creditor disputes and asset valuations.
FTX’s upcoming payout influences the crypto market due to the volume of capital involved and ongoing dissatisfaction with valuation methods.
FTX’s creditor payout, amounting to $1.9 billion, will commence on September 30, 2025. This marks the third distribution round in FTX’s restructuring efforts. Eligible creditors must comply with KYC requirements, completed by August 15.
FTX Trading Ltd. and the FTX Recovery Trust manage the bankruptcy process. Distribution will occur via BitGo, Kraken, and Payoneer. FTX, led by figures removed from current operations, shows no direct participation in payout management.
Asset valuation methods, fixed to November 2022 pricing, have resulted in creditor dissatisfaction with payout values. As Sunil Kavuri, Creditor Representative, mentioned, “The upcoming $1.9 billion distribution will ‘nearly certainly’ exclude creditors in China and other countries flagged in a motion on restricted jurisdictions.” This has impacted BTC, ETH, and others, given recent market increases in value of these digital assets.
The court’s decision to release $1.9 billion was made after the disputed claims reserve was cut to $4.3 billion from $6.5 billion. This distribution still excludes creditors in certain jurisdictions, raising concerns over equity.
Potential market activity could arise as recipients decide on asset conversions post-payout, potentially causing price fluctuations. Historical trends indicate no major disruptions, though future statements by FTX or crypto leaders may alter perspectives.
For further insights and trends, check updates from Root Data Crypto.
