TL;DR:
The FTX Liquidation Trust plans to distribute approximately $2.2 billion to eligible creditors on March 31, 2026, marking the next formal milestone in the exchange’s liquidation process following its collapse. Eligibility depends on identity verification, tax compliance, and inclusion in the official registry by the applicable record date.
Creditor representative Sunil Kavuri noted that “reducing the disputed claims reserve is critical to increasing liquidity.” The proposed reduction of that reserve by $2.2 billion aims to release funds that remained frozen pending unresolved outcomes, which would allow payments to be accelerated for those whose claims are already reconciled.
A disputed claims reserve holds cash for unresolved obligations. By reducing it, FTX signals that it will have greater certainty over the universe of liabilities, enabling the reallocation of funds toward creditors with their documentation in order. Optimizing this reserve can accelerate distributions by reducing capital held idle for contingencies. Residual problematic cases would be the adjustments the court could order on the reserve’s size in subsequent rounds.
Reconciled claims total approximately $9.6 billion and are segmented between small claims — below $50,000 — and larger or non-direct-customer claims, according to SignalPlus. That segmentation determines operational priorities and processing order for the March cycle established by FTX.
Operational administration is handled by the plan administrator with the support of financial advisors, including Alvarez & Marsal, under the direction of John J. Ray III. Distributions will be channeled through BitGo, Kraken and Payoneer. Execution timelines may vary depending on each provider’s workflows and applicable jurisdictional requirements.
Creditors who did not complete KYC or whose claims remain in dispute risk being excluded from the FTX round. Changes made after the record date do not affect the payment registry for that cycle, making preparation ahead of the cutoff decisive.
