FTX Reserve Reduction: Court Approves $1.9 Billion Cut, Next Payouts Scheduled for September

Court Approves $1.9 Billion Reserve Cut for FTX, Next Payouts Set for September

In a major breakthrough, the court has authorized a significant reduction of FTX’s disputed claims reserve by an astonishing $1.9 billion. This milestone development paves the way for the exchange to make its next round of creditor and customer payouts, set to commence on or around September 30.

The unprecedented move aims to accelerate repayments by directing distributions exclusively to legitimate holders, thereby minimizing delays caused by unresolved claims. Following the recent reduction, FTX’s total reserve now stands at $4.3 billion, a substantial decrease from its initial $6.5 billion mark.

As part of this restructuring process, eligible claimants are advised to verify and list their claims by August 15 in order to receive funds via established partners BitGo, Kraken, or Payoneer. Claimants must undergo the necessary Know Your Customer (KYC) processes and provide tax records as part of the verification procedure.

The latest development comes as FTX continues its efforts to settle outstanding debts and deliver on its promise to creditors. The exchange has already made significant strides in this endeavor, having distributed over $5 billion to customers and creditors during the past payout cycle.

Furthermore, the introduction of an innovative marketplace by Backpack, a crypto platform, allows claimants to sell their claims to interested buyers, providing an alternative path to liquidity for those unwilling or unable to wait for future distributions.

The highly anticipated September distribution is expected to focus on paying out creditors who have overcome legal or administrative hurdles and registered as official beneficiaries.

Source: www.crypto-news-flash.com