The liquidation process of the cryptocurrency exchange FTX has made further progress. According to the latest announcement, the company expects to begin the third round of creditor distribution on September 30, 2025, and will adjust the disputed terms for overseas restricted regions. While the market is concerned about whether the large amount of capital to be released will inject new liquidity into the crypto market, FTX still faces skepticism from some creditors.
The next round of debt distribution is scheduled for the end of September, with August 15 as the key registration date.
FTX announced on July 24 that the next round of debt repayment plans will officially start on September 30, and all creditors wishing to participate in this distribution must register by August 15. This is also the company's third large-scale cash distribution since announcing bankruptcy.
The creditor reserve has been reduced, releasing $1.9 billion, but the actual distribution amount has not been disclosed.
A key reason for this distribution is that the bankruptcy court agreed to reduce the creditor reserve from $6.5 billion to $4.3 billion, significantly releasing about $1.9 billion in available funds. However, FTX did not specify in the announcement how much of this fund will actually be distributed to creditors on September 30.
The cumulative repayment amount has reached $6.2 billion, with the overall plan scale expected to be as high as $16.5 billion.
As of now, FTX has completed two rounds of debt repayments, distributing $1.2 billion in February 2024 and $5 billion in May. This brings the total amount distributed to $6.2 billion, but the overall repayment plan is still estimated to be as high as $14.7 billion to $16.5 billion, depending on different types of debts and valuation methods.
Most creditors can recover more than the original principal amount, but some question the repayment criteria.
According to the current plan, about 98% of creditors expect to recover at least 119% of the original debt amount (calculated based on market value at the time of bankruptcy). However, this has also triggered dissatisfaction among some investors, who believe that if calculated at current market prices, the value of crypto assets has significantly increased, and the actual losses are still not fully compensated.
Conducted through BitGo, Kraken, and Payoneer, the market may welcome a liquidity injection.
FTX stated that this funding distribution will be carried out through platforms such as BitGo, Kraken, and Payoneer. Market analysts estimate that this could bring considerable short-term liquidity to the cryptocurrency market, especially in the altcoin sector, further boosting trading volume.
The distribution plan for foreign regions has sparked controversy, with the court requiring FTX to amend the proposal.
The FTX Recovery Trust submitted a motion on July 4, requesting the court to authorize the handling of claims from 'restricted jurisdictions,' including China, Russia, Saudi Arabia, and Pakistan, with plans to immediately confiscate and revoke the qualification for claims distribution from these regions.
However, the proposal quickly sparked controversy and was opposed by creditors from the aforementioned countries. At a hearing this Tuesday, the court ultimately required FTX to amend the motion, cancel the immediate confiscation clause, and allow creditors from these countries to transfer their claims to legally collectable third-party regions to continue participating in the distribution.
This article states that FTX will start the next round of creditor distribution on September 30, with regions like China expected to be successfully compensated, originally appearing in Chain News ABMedia.
