FTX to Resume Creditor Payouts in September as Bankruptcy Winds Down

Bankrupt crypto exchange FTX has announced it will begin its next round of cash distributions to creditors on September 30, marking another step in the court-approved wind-down of the defunct platform.

The firm, once led by Sam Bankman-Fried, has already returned nearly $6.2 billion to creditors. The latest progress follows a U.S. bankruptcy court decision to reduce FTX's disputed claim reserve from $6.5 billion to $4.3 billion, freeing up additional funds for distribution.

Payments will be handled via BitGo, Kraken, and Payoneer, platforms designated to facilitate the redistribution process.

FTX collapsed in late 2022 after revelations about its financial mismanagement sparked a rapid decline. In 2023, Bankman-Fried was convicted on multiple fraud and conspiracy charges and sentenced to 25 years in prison. However, a recent report suggests his sentence could be shortened by up to four years for good behavior.

With the reduction in disputed liabilities and continued asset recovery, FTX's restructuring team is moving toward concluding one of the most high-profile bankruptcies in crypto history.