In a pivotal step for the ongoing FTX bankruptcy proceedings, the estate has officially scheduled its next major creditor repayment distribution for March 31, 2025. The announcement, made on February 14, 2025, from Wilmington, Delaware, sets a clear timeline for thousands of creditors awaiting compensation following the exchange's collapse in November 2022.
Eligibility for the March 31 distribution is strictly limited to creditors whose claims were formally registered on the estate’s official claims ledger as of the February 14 announcement date. The estate will calculate individual payout amounts using reconciled claims data, with communications to creditors expected in the weeks leading up to the distribution. Payments will be made in U.S. dollars, based on asset valuations from the November 2022 petition date, not current market prices.
Concurrently, the FTX estate filed a critical motion with the United States Bankruptcy Court for the District of Delaware. The motion seeks court approval to reduce the multi-billion dollar reserve fund for disputed creditor claims by $2.2 billion, from $4.6 billion to $2.4 billion. The estate, advised by restructuring firm Alvarez & Marsal, argues the initial reserve is excessively conservative, and that freeing this capital would significantly increase the total pool available for creditor payouts. A court hearing on the proposal is scheduled for early March 2025.
The distribution will be facilitated by FTX’s designated Distribution Service Providers (DSPs): Kraken, Payoneer, and BitGo. The estate is urging all eligible creditors to complete Know Your Customer (KYC) verifications and submit tax forms with these DSPs to receive their distributions. A strong warning was also issued about phishing email scams impersonating the FTX Recovery Trust.
This development follows a previous court-approved reduction of the disputed claims reserve by $1.9 billion in late 2024, which unlocked funds for a distribution on September 30, 2025. The March 31 date marks a transition from the reconciliation phase to meaningful capital distribution, with the estate's broader asset recovery efforts—including a separate $1.15 billion lawsuit against Bitcoin miner Genesis Digital—continuing to influence the final recovery percentage for creditors.
