FTX to Begin $1.9 Billion Repayments in September — Here’s What You Need to Know

FTX to Begin $1.9 Billion Repayments in September — Here’s What You Need to Know 💸

💥 Wait… FTX Still Owes People Money?

Yep, and if you were caught in the FTX fiasco (aka the great crypto implosion of 2022), you’ve probably been refreshing your email and bank app for two years now. 🧾📱

But here’s some good news:
FTX’s bankruptcy team is starting a fresh $1.9 billion payout round on September 30th! 🎉

This will be the third repayment to creditors — following:

• 💰 $1.2 billion distributed in February 2024
• 💰 $5 billion announced in May 2024

Now, another $1.9 billion is on its way. But who’s actually getting paid? Let’s break it down…

🧮 Why Now?

The FTX estate had a big pile of claims it wasn’t sure about. Like, “Are we really supposed to pay this guy?” kind of questions. These were called disputed claims.

Originally, they had $6.5 billion stuck in this “maybe yes, maybe no” category.
Now, that number has dropped to $4.3 billion, freeing up $1.9 billion to pay out to people with approved claims.

📅 Important Date:
If you’re a creditor, the key record date is August 15. That’s when they’ll lock in who qualifies for the payout round.

🚫 Still Disputed: China and Other “Restricted” Places

Unfortunately, not everyone is getting paid just yet — especially if you live in a country on FTX’s restricted list. Think of these as “blocked zones” due to local crypto laws or regulatory issues.

According to FTX creditor Sunil Kavuri, this new payout will likely exclude creditors from China and other flagged jurisdictions. 👀

That’s because:

• Their claims aren’t approved yet
• There’s no ruling yet on whether payments to restricted countries are even allowed
• The motion to define this list is still being rewritten

TL;DR — If you’re in one of these countries, your funds might still be stuck in legal limbo 🧊

⚖️ What Happened in Court?

FTX was supposed to get a ruling from the bankruptcy court on Tuesday regarding the whole “restricted jurisdictions” mess.

But instead of a ruling, the judge hit the brakes 🚦 and told FTX to go back and rewrite the motion. The reason?

The original plan was too vague and legally risky. There wasn’t enough clarity on how a creditor could go from “restricted” to “not restricted.” ⚠️

A key point from the judge:

“You can’t just seize or freeze someone’s funds because of where they live. You need a better system.”

So FTX now has to come up with a more detailed and fair process for how creditors can challenge their jurisdiction status. Until then, the money for those countries stays frozen. 🧊

🧾 Who Is Getting Paid This Round?

If your claim:

• Has already been approved ✅
• Isn’t from a restricted country 🌍
• And you haven’t already been paid in full 💸

…then congrats, you’ll likely be included in this next $1.9B payout 🎉

This round might also include partial payments for claims over $50,000, especially those who already received a bit in earlier rounds.

📉 The Bigger Picture

FTX still owes billions. The progress is real, but the mess is far from over.

Here’s where we’re at:

• 💼 Bankruptcy court is slowly approving payouts
• 💰 Over $8 billion has been distributed or planned so far
• 🚫 Billions are still tied up in legal arguments over who gets what and when
• ⏳ Many creditors, especially in certain countries, are still waiting for clarity

🔍 Final Thoughts From Durgesh

If you’re waiting on FTX repayments — keep your eyes on August 15 (record date) and September 30 (distribution start).

But be ready for more delays if your claim is wrapped up in jurisdictional issues. The legal spaghetti still has to be untangled 🍝⚖️

Let’s hope this next payout brings relief to more people, and that FTX finally turns from a cautionary tale into a closed chapter 📕

FTX to Begin $1.9 Billion Repayments in September — Here’s What You Need to Know 💸 was originally published in Coinmonks on Medium, where people are continuing the conversation by highlighting and responding to this story.