A Delaware bankruptcy court has approved a significant development in the FTX bankruptcy proceedings, authorizing the release of $1.9 billion from its reserves for customer distributions. This much-anticipated move offers a glimmer of hope for creditors, with payouts potentially beginning as early as September 30, 2025. The record date for these distributions has been set for August 15, 2025.
<h3>Facilitating Distributions Amidst Reduced Reserves</h3>
[embed]https://twitter.com/MHE_BE3ET/status/1948128807837151446[/embed]

The allocation of these funds has become possible due to a reduction in the reserve earmarked for disputed claims, which has seen a decrease from $6.5 billion to $4.3 billion. This adjustment follows the successful resolution or disqualification of several outstanding claims. The actual distribution of funds will be managed through established platforms including BitGo, Kraken, and Payoneer, operating under the umbrella of the FTX Recovery Trust.

However, prospective recipients must adhere to stringent Know Your Customer (KYC) and tax verification procedures; unverified users will be ineligible to receive any payouts. FTX has also issued a critical warning to its users regarding a surge in phishing attempts, reiterating that legitimate communications will never request wallet connections or private keys.
<h3>Payout Valuation and Community Concerns</h3>
While the distribution marks a crucial step, the repayment plan has faced considerable criticism from the crypto community regarding the valuation method. Payouts are being calculated based on cryptocurrency prices from November 2022, the time of FTX's collapse. This means that creditors who held assets like Bitcoin will miss out on substantial gains, as BTC's value has increased by nearly 500% since then.

Adding to the discontent, reports indicate that 49 countries, including China, are currently excluded from receiving payouts. Furthermore, there is no official confirmation yet on whether previously unstaked Solana tokens, valued at over $31 million, will be factored into these repayments. These contentious points highlight the ongoing complexities and challenges in settling the claims for thousands of affected <a href="https://www.cryptoknowmics.com/news/ftx-repayments-hit-roadblock-in-dozens-of-nations-due-to-crypto-restrictions/">FTX</a> users globally.

FTX Repayment Update: $1.9 Billion Set for Distribution by September 30th

FTX court approves $1.9B repayment by Sept 30. Funds via BitGo, Kraken, Payoneer. Concerns over Nov 2022 crypto valuations.

FTX Repayment Update: $1.9 Billion Set for Distribution by September 30th

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