01
What happened to FTX?
In November 2022 FTX halted withdrawals and filed for Chapter 11 in Delaware (Case No. 22-11068). Its customers became unsecured creditors, with no idea how much they would get back or when.
Simulated case
FTX bankruptcyclaims.From 14 centsto full recovery.
FTX collapsed in November 2022 owing its customers about $8bn. Its claims traded at a fraction of face value while the estate recovered assets. By mid-2026, most creditors had been paid back in full, with interest.
iClaim was not involved in this case. It is one of the 100+ incidents we’ve simulated our claims process on. All figures come from public reporting.
FTX
Exchange bankruptcy
120%
paid on claims under $50,000
- per dollar: an FTX claim’s price in March 2023
- 14¢
- per dollar: an FTX claim’s price in March 2023
- per dollar by May 2024
- 107¢
- per dollar by May 2024
- cumulative recovery by claim class, July 2026
- 103–120%
- cumulative recovery by claim class, July 2026
- paid out in five distributions
- ~$10bn
- paid out in five distributions
02
How were FTX creditors paid?
The estate spent two years recovering and selling assets. The plan was confirmed in October 2024 and took effect on 3 January 2025. Five distributions followed between February 2025 and July 2026: 120% on claims under $50,000, and 103–105% on the other claim classes.
03
What did the claims market do?
Claims traded long before any money was paid. In March 2023 they changed hands at around 14 cents on the dollar; by May 2024 they traded above face value. Creditors who needed cash sold early, and buyers took on the wait and the risk.
Timeline
Nov 2022
FTX halts withdrawals and files for Chapter 11 in Delaware (Case No. 22-11068).
Mar 2023
FTX claims trade at around 14 cents on the dollar.
May 2024
With a recovery plan taking shape, claims trade above face value.
Oct 2024
The court confirms the plan of reorganization.
Jan 2025
The plan takes effect, and the FTX Recovery Trust takes over distributions.
Feb 2025
First distribution, to claims under $50,000.
May 2025
Second distribution, about $5bn.
Sep 2025
Third distribution, about $1.6bn.
Mar 2026
Fourth distribution, about $2.2bn.
Jul 2026
Fifth distribution, about $900m. Every claim class is now above 100%.
What does this case show?
- 1
The market priced the outcome early
Claim prices moved years before the first distribution, so creditors could choose between cash now and waiting.
- 2
Claims are fixed at the filing date
Claims were valued at November 2022 prices and repaid in dollars, so creditors did not share in the later rise in crypto prices.
- 3
Liquidity has a price
Selling early meant taking a discount; waiting meant years of uncertainty. A working market made the first option possible.
Frequently asked questions
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As of July 2026, FTX creditors with claims under $50,000 had received 120% of their allowed claim, and the other claim classes 103–105%, across five distributions totalling about $10bn. Claims were valued at November 2022 prices, so creditors did not share in the later rise in crypto prices. Creditors who sold early, when claims traded at around 14 cents on the dollar in March 2023, got cash years sooner but at a deep discount.
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Sources
- Axios: The rise in value of FTX’s bankruptcy claims (May 2024)
- Cryptonews: FTX sets January 3, 2025 as effective date of its Chapter 11 plan
- Blockworks: FTX Recovery Trust to distribute ~$1.6B in September payout
- Cointelegraph: FTX to distribute about $900M in fifth payment round (July 2026)
Figures are summarised from public reporting and may be revised.
Last reviewed