FTX has received court approval for a $1.9 billion reserve release, paving the way for creditor repayments as part of its bankruptcy proceedings.
FTX's Reserve Release Approval
The court approved the release of $1.9 billion from FTX's reserves on July 23, 2025. This decision will enable further payments to creditors amid the ongoing bankruptcy process.
FTX Trading Ltd. and FTX Recovery Trust
FTX has been authorized to initiate a third round of payments to creditors, set for September 30, 2025. The distribution will be managed by the **FTX Recovery Trust**, overseen by court-appointed administrators and service providers like **BitGo**, **Kraken**, and **Payoneer**.
Market Impact and Broader Implications
The resumption of creditor payouts will influence financial recovery for affected parties. Payments will be made in USD cash or stablecoins, affecting liquidity, while cryptocurrency holdings will not be liquidated. The broader implications of this payout highlight parallels with previous bankruptcies such as **Mt. Gox** and **Celsius**, which also impacted market sentiment.
The release of funds marks a significant step in facilitating repayments to creditors and may influence future regulation within the crypto industry.
