Woofun AI reports that Sunil Kavuri, representing the largest group of FTX creditors, announced on X that the collapsed exchange will distribute approximately $600 million to eligible claimants on July 31. This payment serves as a critical installment in the ongoing resolution of the firm's liabilities.

The distribution is strictly governed by a June 16 record date, meaning only those holding claims as of that specific day are qualified for this round of payouts. This event continues the Chapter 11 bankruptcy process initiated in November 2022, utilizing recovered assets to satisfy creditor obligations. The structured approach ensures that funds are allocated according to established legal timelines rather than arbitrary schedules.

Per Woofun AI, 45 jurisdictions remain excluded from receiving these funds, a list that notably includes China, Egypt, and Russia. These exclusions stem from diverse factors, ranging from local regulatory prohibitions to unresolved legal impediments within those specific regions. Consequently, creditors in these areas must await alternative arrangements or further legal developments to access their claims.

The injection of nearly $600 million into the market may trigger selling pressure on major cryptocurrencies like Bitcoin and Ethereum as creditors liquidate recovered assets. Despite this potential volatility, the payout signals tangible progress in the recovery effort following one of the industry’s most significant failures. This milestone offers partial relief after nearly three years of uncertainty, though the exclusion of numerous jurisdictions underscores the persistent complexity of global bankruptcy proceedings.