FTX to release $2.2bn in two months…steps up lawsuit against Justin Sun-linked exchanges

Bankrupt crypto exchange FTX will disburse additional large-scale funds to creditors in late March.

According to documents recently filed with the U.S. Bankruptcy Court for the District of Delaware, the FTX bankruptcy estate and the recovery trust set March 31 as the next record date for creditor distributions. This round of payouts is expected to be substantially larger than the first distribution.

In a notice filed with the court on the 13th, the estate said it would cut the disputed-claims reserve from $4.6bn to $2.4bn. If the court approves, $2.2bn (about 3 trillion won) in cash that had been tied up will be released immediately and allocated to fund the March distribution.

Creditors seeking payment must complete claim approval and identity verification (KYC) procedures by Feb. 14. Payouts will be made through approved agents including BitGo, Kraken and Payoneer.

The estate is also accelerating efforts to recover external assets, with a particular focus on exchanges linked to TRON (TRX) founder Justin Sun.

In filings submitted to the court on the 7th, the estate sought leave to amend its complaint against Justin Sun, HTX and Poloniex. The move is aimed at recovering about $27.5m in assets that FTX and Alameda Research held with those exchanges at the time of the bankruptcy in November 2022. The estate claims the funds are in frozen accounts.

Separately, the estate continues legal proceedings as it opposes a motion to dismiss a $1bn clawback lawsuit against Genesis Digital Assets. As of the 16th (local time), the total amount of assets recovered by the FTX estate is estimated at roughly $16bn to $17bn, of which about $7.1bn has already been distributed to creditors.