FTX Recovery Trust will pay out $2.2 billion to creditors by March 31, 2026, bringing the total repayment to $10 billion, but many creditors believe this is still insufficient to cover actual losses.
FTX Recovery Trust announced on Wednesday that it will distribute $2.2 billion to creditors and former customers of the bankrupt exchange by March 31, 2026, marking the fourth repayment since the liquidation process began in February 2025. Eligible creditors will receive the funds through their chosen distribution partner within one to three business days.
This payout structure includes an 18% payout for international client claims, 5% for US client claims, and 15% for both general unsecured debt claims and claims related to crypto asset loans. Notably, claims in the convenience group will be repaid at 120% under the recovery plan. The fifth payment is scheduled for May 29, 2026.
$10 billion has been repaid, but the debate over fairness is far from over.
Cumulatively, across four distributions, starting with $1.2 billion in February 2025, followed by $5 billion in May, and then $1.6 billion in September of the same year, the total payout will reach approximately $10 billion after this round. In terms of scale, this is one of the largest asset recovery cases in the history of crypto-related bankruptcies.
However, discontent within the creditor community has not subsided. The core issue lies in the valuation mechanism: the entire repayment is calculated based on the value of crypto assets at the time FTX filed for bankruptcy in 2022, when Bitcoin was trading around $16,871 and Ether at approximately $1,258, significantly lower than current market prices.
Sunil Kavuri, a creditor and advocate for the victim community, frankly stated that "FTX creditors have not been fully reimbursed." In theory, these repayments could generate a significant amount of Capital returning to the crypto market if creditors and former customers decide to reinvest in crypto assets.
Meanwhile, Sam Bankman-Fried, the founder of FTX, who is serving a 25-year prison sentence after a 2023 conviction related to the misuse of client funds, continues to pursue his appeal. As of Wednesday, he was being held at Terminal Island Federal Correctional Facility in the Los Angeles area, but according to court documents filed by his mother on Monday, he is expected to be transferred to another detention facility in the coming weeks.
