FTX Creditor Rep Confirms Three Payout Rounds Totaling $7.1B

FTX creditor representative Sunil confirmed three payout rounds. They total $7.1 billion. The next distribution is expected in January 2026.

FTX creditor representative Sunil has confirmed significant progress in the exchange’s bankruptcy proceedings. The crypto exchange that no longer exists has paid out in three rounds to the creditors $7.1 billion. This is a major step in solving the complicated financial meltdown that affected millions of users around the world.

FTX Estate Delivers $7.1B Recovery; Shareholders May Gain Unusual Returns

The first payout, which was an initial distribution of $454 million, was made on February 18, 2025. This was followed by a large second $5 billion distribution on May 30, 2025. The third round, which was $1.6 billion in total, was completed on September 30, 2025. These phased distributions reflect the methodical approach the FTX bankruptcy estate has taken to recover and return funds.

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FTX’s net assets are currently estimated to be between 16 and 17 billion dollars. With a large portion already distributed, the bankruptcy plan is progressing as expected. The next payout round is expected to be for January 2026, with a record date for eligible claimants to be confirmed in December 2025.

The original distribution was weighted to smaller creditors, specifically creditors with claims of $50,000 or less. These claimants, which fall under the Convenience Class, were given a full repayment under the convenience class of about 119% of the value of the original claims plus interest of 9% per annum. As a result, this prioritization was done to provide quick relief to a large number of individual users.

The second and third distributions went to a wider range of eligible creditors. This included US and dotcom customers, and Alameda Research counterparties. Recovery rates for larger creditors differed depending on the type of claims they held. For instance, general unsecured and digital asset loan claims received cumulative distributions of up to 85%.

Notably, even FTX shareholders, who usually get nothing in bankruptcy cases, could see some recovery. On the other hand, shareholders, including Singapore’s Temasek, could get up to $230 million from money seized by the Department of Justice.

Asset Recovery and Payout Mechanisms

FTX can recover between $14.7 billion and $16.5 billion by carefully liquidating assets and settling with different creditors. This strong asset recovery effort was instrumental in helping to allow full repayment for many customers and large returns for others.

One of the major issues in the repayment process has been the method of valuation. Repayments were based on the US dollar value of assets at the time of FTX’s collapse in November 2022. Some creditors disagreed with the decision because crypto prices, especially Bitcoin, are much higher now. They say they would have gotten more money if they were paid in crypto at today’s rates.

In addition, the complex process of distribution of funds is being made easier through collaborations with external providers. These include prominent entities such as BitGo, Kraken, and Payoneer. Moreover, this multi-provider approach helps ensure efficient and secure distribution of funds to a diverse base of creditors across the world.

In conclusion, the confirmation of $7.1 billion in payouts across three rounds of payouts is a pivotal milestone in the FTX bankruptcy. With the total assets mostly recovered and more distributions scheduled for early 2026, the process is on track to end. While the approach to the valuation of these assets has attracted some criticism, the large recovery rates reflect a sincere attempt to give back money to those affected by the collapse of the exchange.