The defunct crypto exchange FTX has announced that it will begin its next round of payments to creditors on September 30. This marks the third significant payout to creditors since the crypto exchange collapsed and filed for bankruptcy in 2022. Also, the record date for eligible claim holders to receive their funds has been set for August 15. This follows a significant court decision to reduce the claims reserve, unlocking billions for distribution. $1.9B Cleared for Distribution After Reserve Cut In its latest update, FTX confirmed that the bankruptcy court approved a reduction in the claims reserve from $6.5 billion to $4.3 billion. This decision releases $1.9 billion for the next round of creditor payouts. FTX did not reveal the exact amount that will be distributed on September 30. Nevertheless, the approval gives fresh hope to thousands of former users who have been awaiting repayment. So far, FTX has paid out about $6.2 billion in total to creditors through two earlier rounds. In February, the company returned $1.2 billion and paid out $5 billion in May to creditors . The whole repayment plan aims to deliver between $14.7 billion and $16.5 billion, depending on the type of claim and its assessed value. Most Creditors Set to Recover More Than Initial Claims FTX’s plan is expected to repay about 98% of creditors at least 119% of their original claims. This is based on the values at the time of the company’s collapse in 2022. However, this has not been without controversy. Some creditors argue that the recovery plan undervalues crypto assets, as the broader crypto market has surged since the time of bankruptcy. All distributions will be processed through BitGo, Kraken, and Payoneer, which will handle the logistics of the payouts. Crypto traders believe that the next wave of repayments could bring new liquidity into the market, particularly for altcoins, as recipients may reinvest their funds. Court Rejects Immediate Forfeiture in Restricted Countries In a separate legal move, the FTX Recovery Trust submitted a motion on July 4. As revealed in a recent X post , the company asked the court for permission to cancel and reverse creditor claims in restricted jurisdictions. These include countries where such payments may be illegal, such as China, Russia, Saudi Arabia, and Pakistan. The motion caused an intense backlash, with creditors from those regions filing formal objections . The bankruptcy court reviewed the issue in a hearing on Tuesday and rejected the original proposal. The court instructed FTX to revise the motion by removing the “immediate forfeiture” clause. It also allowed creditors in restricted regions to transfer and access their claims through different, legally approved jurisdictions. The post FTX Sets September 30 for Next Creditor Payout appeared first on TheCoinrise.com .
