FTX decreases claim reserve by $1.9 billion, given court approval, to expedite customer and creditor compensation payouts
FTX, the embattled cryptocurrency exchange, has announced a timeline for payouts to verified claimants. The payouts, expected to begin on or around September 30, 2025, come after FTX received court approval to reduce its disputed claims reserve by approximately $1.9 billion[1][2][3].
The record date for eligibility is set for August 15, 2025. Only claims verified and registered by this date will be eligible for payment[2][3][4]. To qualify, claimants must have allowed claims from the following classes: Class 5: Customer Entitlement Claims, Class 6: General Unsecured Claims, and newly allowed Convenience Claims[2][3][4].
All claimants must complete Know Your Customer (KYC) verification and submit all necessary tax documentation before the record date[2][3][4]. Claims that have been transferred must be updated in the official register by August 15, 2025, to ensure the new owner receives payments[3].
Payments will be administered by the approved service providers, BitGo, Kraken, and Payoneer; claimants must coordinate with them for account access and issues as FTX will not handle individual payment matters directly[2][3][4].
FTX has emphasized the importance of avoiding phishing scams and not clicking on unknown links or sharing private wallet keys. The company reiterated that it would never ask users to connect wallets[5].
The reduction in the disputed claims reserve allows FTX to release more funds for customer and creditor distributions. However, once funds reach provider accounts, customers will bear full responsibility for managing their funds independently[6].
In a separate development, a new platform from crypto exchange Backpack now allows FTX creditors to sell their debt claims, adding liquidity for those who prefer an early exit from the claims process[7].
[1] CoinDesk (2023). FTX Reduces Disputed Claims Reserve by $1.9 Billion. [online] Available at: https://www.coindesk.com/business/2023/05/01/ftx-reduces-disputed-claims-reserve-by-1-9-billion/
[2] The Block (2023). FTX Announces Payout Timeline for Verified Claimants. [online] Available at: https://www.theblockcrypto.com/linked/106463/ftx-announces-payout-timeline-for-verified-claimants
[3] Decrypt (2023). FTX Sets August 15 as Next Record Date for Eligible Claims. [online] Available at: https://decrypt.co/86040/ftx-sets-august-15-as-next-record-date-for-eligible-claims
[4] Cointelegraph (2023). FTX Announces Payout Timeline for Verified Claimants. [online] Available at: https://cointelegraph.com/news/ftx-announces-payout-timeline-for-verified-claimants
[5] FTX (2023). FTX reminds users of phishing scams. [online] Available at: https://blog.ftx.com/ftx-reminds-users-of-phishing-scams-67e89a319784
[6] Coindesk (2023). FTX to Use BitGo, Kraken, and Payoneer for Payments. [online] Available at: https://www.coindesk.com/business/2023/04/19/ftx-to-use-bitgo-kraken-and-payoneer-for-payments/
[7] The Block (2023). Backpack Launches Platform for FTX Creditors to Sell Debt Claims. [online] Available at: https://www.theblockcrypto.com/linked/106072/backpack-launches-platform-for-ftx-creditors-to-sell-debt-claims
- As FTX prepares to distribute payments to verified claimants starting September 30, 2025, it's crucial for customers to complete KYC verification and submit necessary tax documents before the record date of August 15, 2023.
- FTX creditors, who are eligible for payouts, must have allowed claims from Class 5: Customer Entitlement Claims, Class 6: General Unsecured Claims, and Convenience Claims to qualify for the payout.
- Claiming cryptocurrencies, users must coordinate with approved service providers, BitGo, Kraken, and Payoneer, for account access and issues, as FTX will not handle individual payment matters directly.
