Third Wave of Repayments Scheduled

FTX's bankruptcy estate will distribute $1.9 billion to creditors starting September 30, marking the third major payout since the exchange collapsed. The distribution follows a court-approved reduction of disputed claims reserves from $6.5 billion to $4.3 billion, freeing up funds for repayment. Eligible claimants will be determined based on records as of August 15.

Previous Distributions Set Precedent

This upcoming payout follows two prior distributions — a $1.2 billion payment in February and a $5 billion allocation announced in May. The releases come as FTX works through its bankruptcy process, with the latest distribution representing funds no longer subject to legal challenges.

Jurisdictional Exclusions Remain

Creditor representative Sunil Kavuri indicates the distribution will likely exclude claimants from China and other territories flagged in earlier motions. "Their claims haven't been approved yet and probably won't be by the August cutoff," Kavuri stated, noting a revised motion regarding restricted jurisdictions remains in progress.

Court Directs Refinement of Payment Framework

A Tuesday bankruptcy court hearing addressed but didn't resolve the contentious motion to withhold payments from 49 jurisdictions. Instead, judges instructed FTX to develop clearer procedures, specifically prohibiting fund seizures and establishing methods for jurisdiction reclassification. Creditor Weiwei Ji, who attended virtually, confirmed the court demanded "a much more detailed and workable framework."

Partial Payments Continue

The new distribution will include some claimants who previously received partial payments for claims exceeding $50,000. Meanwhile, the remaining $4.3 billion in disputed claims continues undergoing court review, with specific approval criteria remaining undisclosed.

Estate Faces Ongoing Scrutiny

The FTX Recovery Trust's handling of creditor repayments remains under close examination, particularly regarding jurisdictional restrictions that initially drew over 90 objections. The estate has yet to respond to inquiries about the latest developments in its repayment strategy.