The cryptocurrency ecosystem has marked a pivotal moment as FTX, once a major crypto exchange, began its creditor distribution process. Sunil, an advocate for FTX creditors known on X as @sunil_trades, shared that around $5 billion is being returned to creditors.
Large claims over $50,000 are expected to receive between $4.2 billion and $4.6 billion.
FTX Distribution: 2 June 25
~$5bn is due to be returned to FTX creditors today
Claims > $50k: $4.2bn+ to $4.6bn to large claims
After a long wait of 2.5 years
FTX was the 2nd largest exchange in 2022 and anyone that traded crypto in 2021/22 was exposed
— Sunil (FTX Creditor Champion) (@sunil_trades) June 2, 2025
This comes 2.5 years after FTX’s dramatic collapse in November 2022.
Back then, FTX was a titan in the crypto space, a go-to platform for traders during the 2021-2022 boom.
Its downfall started when CoinDesk exposed the shaky finances of Alameda Research, a trading firm tied to FTX, which relied heavily on FTT, FTX’s native token.
The situation escalated quickly.
On November 6, 2022, Binance, the largest crypto exchange, announced it would sell off its 23 million FTT tokens—worth about $529 million—due to risk concerns following the Terra (LUNA) stablecoin crash earlier that year.
This triggered a flood of withdrawals from FTX.
By November 7, FTX admitted it couldn’t meet withdrawal demands, sparking a liquidity crisis.
Binance briefly considered a buyout but backed out after due diligence.
On November 10, the Bahamas froze FTX’s local assets, and soon after, both FTX and Alameda filed for bankruptcy.
The collapse, one of the largest in crypto history, sent shockwaves through the market, with investors pulling back and partners facing closures over unpaid debts.
The current distribution stems from a Global Settlement Agreement between FTX Digital’s liquidators in the Bahamas and the U.S. Chapter 11 Debtors.
This agreement pools assets to ensure FTX.com customers receive fair recoveries, whether they filed claims in the Bahamas or the U.S.
Surprisingly, creditors are projected to recover 119% to 143% of their claims—a high return rate due to effective asset management.
The process kicked off with a distribution record date of January 3, 2025.
Creditors must complete Know Your Customer (KYC) verification and tax compliance by April 11, 2025, to qualify for payouts.
Distribution Service Providers are handling payments, but hurdles remain.
As of January 16, 2025, some jurisdictions are still ineligible, blocking certain creditors from selecting providers via the FTX Customer Portal.
Disputed claims are also an issue, with the FTX Recovery Trust working to reconcile them.
Some creditors may later become eligible if their claims are approved.
For FTX EU customers, the process is not so straightforward.
Those with pending crypto withdrawals as of November 11, 2022, had to file claims in the U.S. bankruptcy proceedings to be eligible, as the FTX Recovery Trust isn’t responsible for fiat balances owed by FTX EU.
In the Bahamas, a liquidation process led by Brian Simms KC since November 2022 has seen some success.
One social media user reported receiving funds through this channel.
However, not everyone is satisfied.
Kraken users in Germany, for instance, have reported delays, pointing to logistical challenges in the payout process.
The distribution’s timing has sparked discussion.
X user Eugene Bulltime noted that the funds might be spent on vacations rather than reinvested in crypto, potentially limiting market impacts.
More critically, fairness concerns have emerged.
Investors from ineligible countries, like X user Niceday, argue their exclusion violates principles of dignity and human rights, highlighting inequities in global finance.
As FTX’s creditor payouts roll out, they mark a step toward closure for many affected by the 2022 collapse.
Yet, for others, the fight for justice continues.
The process underscores both the resilience of coordinated recovery efforts and the persistent challenges in ensuring equitable outcomes in the wake of such a massive financial failure.