Another Massive Payout Round Kicks Off
FTX is moving forward with another major repayment phase, announcing it will distribute $2.2 billion to creditors starting March 31. This marks the fourth wave of payouts since the exchange collapsed in 2022, bringing total repayments to over $6 billion so far.
The distribution will target users under the Chapter 11 bankruptcy plan, specifically those classified within the Convenience and Non-Convenience groups. Eligible recipients are expected to receive their funds within three business days, processed through platforms like BitGo, Kraken, and Payoneer.
This latest move signals continued progress in what has become one of the largest recovery efforts in crypto history.
Retail Users Continue to Lead Recovery Efforts
FTX’s “Convenience Class” primarily includes retail traders and smaller creditors, representing the bulk of affected users. Meanwhile, the Non-Convenience Class covers larger and more complex claims, often tied to institutional or high-value accounts.
The bankruptcy estate has made a notable effort to prioritize retail recovery, with many users expected to receive between 118% and 142% of their original holdings’ value, based on prices at the time of the collapse. However, this approach has sparked criticism, as repayments are being made in fiat value rather than in-kind crypto assets, meaning users are not directly benefiting from the market’s recovery since 2022.
Bitcoin’s Collapse Still Shapes Payout Calculations
The timing of FTX’s collapse continues to impact how repayments are calculated. When the exchange went bankrupt in November 2022, Bitcoin had plunged to around $15,760, marking a major market low.
This valuation point has become the baseline for creditor repayments, meaning that even with percentage-based bonuses, users are tied to depressed market prices from the time of bankruptcy.
For many creditors, this has been a point of frustration, especially given Bitcoin’s significant recovery since then.
Bigger Recoveries for Institutional Claims
The latest distribution also improves returns for several non-convenience creditor groups, bringing many closer to full recovery. FTX confirmed that Class 5A claims (Dotcom Customer Entitlements) will receive an additional 18% boost, raising total recovery to 96% of losses.
Meanwhile, Class 5B (U.S. customer claims) will see a 5% increase, while Classes 6A and 6B-covering general unsecured and digital asset loan claims-are being raised by 15%, effectively bringing them to 100% recovery.
These adjustments indicate that FTX’s estate has managed to recover more value than initially expected, despite the scale of the collapse.
Bankman-Fried Continues to Push Back
Former CEO Sam Bankman-Fried remains a vocal critic of the bankruptcy process, even after being sentenced to nearly 25 years in prison following his conviction on multiple criminal charges in 2023.
Bankman-Fried has also accused the legal teams involved of forcing the company into bankruptcy, arguing that decisions made during the process led to unnecessary losses.
Court filings from his legal team further allege that nearly $1 billion has been spent on consultants and legal fees, while also criticizing the sale of assets, including a stake in AI firm Anthropic, which they claim was undervalued.
No Pardon in Sight as Fallout Continues
Despite attempts to shift public narrative, Bankman-Fried’s legal situation remains unchanged. While he has recently expressed support for political figures, including Donald Trump, the White House has made it clear that no pardon is being considered.
Meanwhile, the bankruptcy plan itself was approved in 2024 by U.S. Judge John Dorsey, solidifying the legal framework for ongoing repayments.
A Rare Outcome in Crypto Collapses
FTX’s recovery process is shaping up to be an outlier in the crypto industry, where most bankruptcies result in heavy losses for users. Instead, this case has seen billions returned and some creditors approaching full recovery.
Still, debates around fairness, valuation timing, and repayment methods continue to linger, highlighting the complexity of resolving large-scale crypto failures.
As the next $2.2 billion distribution rolls out, creditors are finally seeing tangible progress, even if the scars of the collapse are far from fully healed.
