The FTX Recovery Trust has recently announced that it has set August 15 as the record date for its next distribution to creditors. This news comes after a statement released on July 23, with payments expected to begin around September 30. The distribution window will cover holders of allowed Class 5 Customer Entitlement Claims and Class 6 General Unsecured Claims under the confirmed plan, as well as Convenience Claims that have not yet been paid.
In addition to setting the record date, the estate has received court approval to reduce its disputed claims reserve by $1.9 billion, bringing it from $6.5 billion to $4.6 billion. This reduction will free up additional cash for the upcoming round, which will be administered by BitGo, Kraken, and Payoneer. It is important to note that only creditors who have cleared all pre-distribution requirements will receive funds.
FTX has reminded claimants that once the estate transfers money to their chosen provider, account access and support will fall under the responsibility of that platform. Claimants must complete Know Your Customer checks, submit tax forms, and finish onboarding before disbursements are made. Transfers of claims are subject to strict timing, with distributions flowing only to transferees whose assignments are processed and reflected on the official claims register by the record date.
This announcement marks the latest major payout milestone since the exchange collapsed in late 2022. Following months of reconciliation, asset sales, and litigation over creditor claims, the recent round of repayments on May 30 saw nearly $5 billion distributed to creditors. This was the second round of repayments that began on February 18, addressing creditors with claims valued at $50,000 or less, with 9% annual interest accrued since the bankruptcy filing in November 2022.
It is important to note that the FTX Trust does not require potential creditors to connect wallets to verify eligibility or receive reimbursements. The upcoming distribution is a significant step forward in the ongoing process of resolving creditor claims and bringing closure to the FTX exchange collapse.