Bankruptcy Court approved a $4.3B payout to FTX creditors after reducing disputed claims by $1.9B ahead of the September 30 distribution.
Claimants must pass the August 15 record date with an approved claim status and complete KYC checks to qualify for the upcoming payout.
Creditors from restricted jurisdictions, including China, Russia, Ukraine, and Pakistan, remain excluded from this distribution, totaling $470M in claims.
FTX will distribute $4.3 billion to approved claimants on September 30 following a bankruptcy court decision to finalize disputed claims. The court reduced the approved claims reserve by $1.9 billion, paving the way for the upcoming payout. The record date for determining eligible recipients is today, August 15.
Only claimants who pass today’s record date and have an allowed claim status will be included in the September distribution. This payout covers holders of Class 5 Customer Entitlement Claims, Class 6 General Unsecured Claims, and remaining Convenience Claims. FTX creditor advocate Sunil urged claimants to confirm their claim status without delay.
Disputed and Unverified Claims Remain Pending
Creditors with unresolved or disputed claims will not be part of this distribution. The FTX Recovery Trust confirmed that pending claims will remain on hold until resolution. These creditors will need to pursue further legal steps before any payout.
https://twitter.com/sunil_trades/status/1956262792488476729
Claimants must complete pre-distribution know-your-customer checks and register with authorized distribution providers such as BitGo, Kraken, and Payoneer. Those who fail to meet these requirements will not receive funds.
Tax Documents and Restricted Jurisdictions
The FTX Recovery Trust will deny payments to claimants who did not submit the required tax forms by today’s deadline. Creditors from restricted jurisdictions are also excluded. China has the largest number of affected claimants, followed by Russia, Ukraine, and Pakistan. Funds tied to these jurisdictions total around $470 million.
Some creditors have opted to sell their claims through exchanges like Backpack Exchange, Figure Market, Claims Market, and X claim. While these transfers often include extra fees, they provide faster liquidity to financially strained creditors.
The FTX Recovery Trust continues to review disputed claims, and developments in regulatory conditions may eventually open access to restricted creditors. Political and market stability could influence the timeline for broader distributions.
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