FTX's next distribution date and proposes claims

2026-01-15 07:58:50

FTX has scheduled its next distribution for holders of allowed claims, with a record date of February 14

ContentsDetails of the proposed claims reserve amendmentKYC requirements and phishing warningsFTX’s ongoing lawsuit against Genesis DigitalThe distribution is set to begin on March 31, following the approval of a proposed amendment to reduce the disputed claims reserve by $2.2 billion

The amendment, pending approval from the Bankruptcy Court, would decrease the reserve from $4.6 billion to $2.4 billion, allowing for the release of additional funds for distribution. The distributions will be handled by FTX’s Distribution Service Providers (DSPs), including Kraken, Payoneer, and BitGo.

Details of the proposed claims reserve amendment

As part of FTX’s ongoing bankruptcy proceedings, the exchange has filed a motion to reduce the disputed claims reserve. If approved, this reduction would release additional cash for distribution to holders of valid claims. The new reserve, totaling $2.4 billion, follows an earlier decision by the Bankruptcy Court to lower the reserve by $1.9 billion in 2025

FTX has set strict guidelines for the distribution process, with distributions only being made to those who have met pre-distribution requirements. Claims transfers will also only be processed if they are reflected in the official register, and the 21-day notice period has passed without objections.

KYC requirements and phishing warnings

To ensure smooth distribution, FTX is urging all creditors and customers to complete their Know Your Customer (KYC) verifications with the DSPs. This process is required for all individuals seeking to receive distributions. In addition, FTX has issued a warning regarding phishing scams, advising customers to remain cautious of emails claiming to be from the FTX Recovery Trust or the Customer Portal. The company has emphasized that it will never ask users to connect their wallets to any external services.

FTX’s ongoing lawsuit against Genesis Digital

FTX is also continuing its legal battle with Bitcoin miner Genesis Digital, seeking to recover over $1 billion as part of its clawback strategy. The lawsuit centers around misappropriated funds allegedly used by Sam Bankman-Fried’s hedge fund, Alameda Research, to invest in Genesis Digital

The FTX Recovery Trust claims that these funds, taken from FTX user accounts, were used to purchase shares at inflated prices between August 2021 and April 2022. Genesis Digital, however, has moved to dismiss the case, arguing that it is not subject to U.S. jurisdiction due to its headquarters being in Dubai.

The upcoming distribution and proposed reserve amendment mark a significant step forward for FTX as it continues to address the claims of its creditors. With ongoing legal challenges and a complex bankruptcy process, the exchange is working to ensure that all distributions are made in compliance with the Bankruptcy Court’s guidelines. As FTX navigates this complex landscape, its actions will have far-reaching implications for the company’s recovery and the broader crypto community.

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