FTX Creditors Set to Recover Up to 120% of Claims

Creditors Edge Toward 95% Recovery

FTX has confirmed a $1.6 billion payout to creditors as part of its ongoing bankruptcy resolution, raising recovery levels to nearly 95%. The September 30 announcement, made by representative Sunil, highlights a stunning turnaround in what was once seen as an impossible recovery. 

Distributions are being handled by BitGo, Kraken, and Payoneer, with payments expected to land in creditor accounts within 1–3 business days. This marks the third major payout since the exchange collapsed in November 2022.

Experts note that the recovery is historic, far surpassing the 20–40% typical recovery rate in bankruptcy cases.

Large Creditors Recover 83.9%

For creditors with claims above $50,000, this latest round delivers an additional 78.2% recovery, on top of 5.7% from May 2025, bringing their cumulative recovery to 83.9%.

From a pool of $1.347 billion in large claims, about $1.053 billion is being distributed in this tranche, alongside $76.8 million from earlier. On average, large claimants owed $53,550 will recover roughly $41,874.

While not fully repaid, analysts stress that this outcome is far more favorable than typical financial collapse cases, given the scale of the FTX fraud.

Small Creditors Overcompensated at 120%

In a rare twist, smaller creditors are coming out ahead. Those owed less than $50,000 are receiving 120.5% of their original claims, meaning they’re getting back more than they lost.

The small-claim pool valued at $336.8 million is distributing an outsized $405.9 million, including $69.1 million above the owed balances. On average, claimants owed $4,210 will now receive around $5,073.

This makes FTX one of the few bankruptcies in history where smaller creditors end up overcompensated, a stark contrast to the devastation most fraud victims face.

U.S. Creditors Still Lagging Behind

Not all recoveries are equal. U.S. account holders are only receiving about 40% of their claims, due to jurisdictional complexities. American claims make up nearly half of the $1.684 billion pool, but only about $336.8 million is being distributed domestically.

Despite the disparity, analysts say the overall outcome remains unprecedented.

A Landmark in Bankruptcy Resolution

The FTX case continues to reshape expectations around crypto bankruptcies, showing that strategic asset recovery and international partnerships can produce surprising results.

While the collapse of FTX in 2022 devastated the crypto world, the resolution now stands as a historic precedent — one where creditors not only recovered, but in some cases profited from the fallout.