FTX Creditors Alert: Key Payout Steps Due by Aug 15

Key Highlights

• FTX will distribute the next round of payment in September 2025.
• Sunil FTX urges all creditors to act on the set criteria before the deadline. 
• Earlier payout rounds saw delays due to poor documentation.

FTX creditors who lost a considerable amount of money in the FTX collapse receive a key update ahead of the next payout. According to Sunil Kavuri, an FTX creditor advocate, posted on X about the next round of repayments. In the announcement, he disclosed that the company is planning the next distribution on September 30, 2025. In order to get the money back, the creditors must comply with certain fixed criteria by August 15, 2025. This deadline now has become crucial for anyone hoping to recover their funds.

This latest guidance by Kavuri, he emphasized the urgency by stating, “The next distribution is coming Sept 30. BUT, your claim needs to be allowed, KYC completed, distributor onboarding done and tax forms submitted by Aug 15. Don’t miss this.”

Sunil’s updates have become a trusted source of information for many retail creditors that are navigating the complex and often opaque bankruptcy process.

Critical Requirements for Distribution Eligibility

To receive the next payment on September 30, as confirmed by the FTX bankruptcy team, the following criteria has to be met:

• Your claim must be Allowed: Only creditors who have validated and court approved claims will be credited.
• Completion of KYC (Know Your Customer): The creditors must verify themselves and their verification must be submitted successfully and approved.
• Onboarding with the official Distributor: Make sure that the assigned distribution platform has your account all set up.

The creditors can easily fulfil these requirements through the official FTX Claims Portal. Missing even one of these steps can possibly delay the receipt of payment until the further distribution rounds.

A Look Back: Prior Distributions and Improvements

FTX started paying back its creditors in late 2024, but the first round was not as smooth as the creditors expected it to be. The creditors faced several problems. There was utter confusion, delays and missing paperwork from many people. Common issues included incomplete KYC, mistakes in the tax forms, and delays in setting up accounts on the payment platform. This frustrated many of the creditors.

However, by the second round of distribution, especially the most recent one in June 2025, the process was way smoother than the previous one. According to the updates and user feedback, payments were processed faster and most of the creditors received their share of money on time. This improvement was because of clearer communication, easier forms, and help from community leaders such as Sunil Kavuri himself.

As of now, many of the creditors have not received their full payouts yet and hence it becomes imperative to follow all the steps carefully, especially before each new payment round.

FTX Collapse: A Quick Overview

FTX was once one of the biggest and most trusted crypto exchanges in the world. However, things changed in November 2022 when FTX went bankrupt after it was discovered that the company’s CEO Sam Bankman-Fried had misused billions of dollars belonging to the exchange’s customers.

At its prime, the platform was worth $32 billion and had support from various investors (including some big names). However, due to poor management, legal troubles and these sudden financial problems, the company collapsed as one of the biggest financial scandals in recent history.

Over a million people and businesses who had their money with the platform were left stranded and these people were unsure if they would get anything back. Since then, a new CEO and legal team have been working hand in hand to recover as much money as possible by selling of assets, taking legal action, and reaching settlements as well.

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