FTX Sets Distribution Date, Seeks $2.2B Claims Reserve Reduction

TLDR

• FTX has scheduled the next distribution record date for February 14.
• The actual distribution to allowed claim holders is expected to begin on March 31.
• FTX has proposed a $2.2 billion reduction to the disputed claims reserve.
• The reserve would decrease from $4.6 billion to $2.4 billion if the court approves the proposal.
• Kraken, Payoneer, and BitGo will handle the distribution of funds to creditors.

FTX has confirmed February 14 as the next record date for its upcoming creditor distribution, with payouts starting March 31. The exchange aims to reduce its disputed claims reserve from $4.6 billion to $2.4 billion, pending court approval. FTX has also urged eligible claimants to complete KYC and tax forms to qualify for payment.

FTX Proposes $2.2B Reserve Cut for Distribution

FTX submitted an amended notice to the U.S. Bankruptcy Court proposing a $2.2 billion cut to the disputed claims reserve. If the court approves, this move will release additional funds for distribution to creditors with allowed claims. The current reserve would drop from $4.6 billion to $2.4 billion.

The exchange stated that only creditors with fully processed claims on the official register will receive payments. Those who have transferred claims must ensure the transferee appears on the official record by February 14. FTX emphasized that the mandatory 21-day notice period must expire without objections for the claim to remain valid.

FTX’s Distribution Service Providers Kraken, Payoneer, and BitGo will handle the next round of distributions. The firm is urging customers to complete onboarding steps to avoid delays.

Customers Must Complete KYC and Watch for Scams

FTX advised all allowed claim holders to complete Know Your Customer (KYC) verification and submit tax forms via their DSPs. The deadline for eligibility is based on the February 14 record date, and only transferees listed on the claims register by that time will be paid. The 21-day period after notice must also pass without objections.

The exchange has warned creditors about phishing scams targeting customers with fake distribution emails. It clarified that the FTX Recovery Trust will never ask users to connect external wallets. “Ignore emails that request external wallet connections,” the company said in its phishing alert.

The Recovery Trust will only use secure and verified communication platforms during the payout period. Customers should check the official portal for updates. FTX encouraged users to remain alert and verify sources before responding to any emails.

Lawsuit Against Genesis Digital Continues Over Pre-Collapse Investments

FTX Recovery Trust is pursuing $1.15 billion from Genesis Digital over investments made with funds from Alameda Research. The complaint states that former CEO Sam Bankman-Fried used commingled customer assets for those purchases. The trust described the transactions as reckless and overvalued.

Genesis Digital has filed a motion to dismiss the case, arguing the Delaware court lacks jurisdiction over its Cyprus-based operations. The mining company, headquartered in Dubai, said it has no U.S. presence and should not face trial in U.S. court. Genesis maintains the claims are both misguided and jurisdictionally barred.

The lawsuit names Genesis founders Marco Krohn and Rashit Makhat, claiming the deals occurred between August 2021 and April 2022. The trust alleges the funds originated directly from FTX customer accounts. The Recovery Trust aims to recover losses through clawback actions approved by the bankruptcy court.

In a prior court-approved move, FTX reduced its reserve by $1.9 billion in 2023, allowing a distribution on September 30, 2025. Legal counsel includes Sullivan & Cromwell LLP, with financial oversight by Alvarez & Marsal North America LLC. Quinn Emanuel and Landis Rath & Cobb LLP are serving as special and Delaware counsel, respectively.

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