FTX Confirms $1.6B Creditor Payout: Large Claims Recover 83.9%, Small Claims Surpass 120%

The credit representative of that creditor Sunil confirmed that FTX will release $1.6 billion today. The payment is made to the large and small claimants in the bankruptcy plan.

Big Claims Settlement 78.2% Plus Before 5.7%

The round also sees creditors recovering 78.2 percent of balances in claims of over 50,000. By May 30, 2025, they had already been issued 5.7%. Together with large claimants have obtained 83.9% of their claims allowed. On an estimated large-claim pool of $1.347 billion, the payment is currently estimated at $1.053 billion. Another $76.8 million was contributed by the May tranche.

Small creditors whose claims are less than $50,000 are paid 120.5 percent of their balances. This is also a payout that exceeds the original claim value by 20.5% which is probably inclusive of interest or compensation. Distribution of 405.9 million with excess of 69.1 million, already has a small-claim pool estimated to be 336.8 million. Individual claimants with average awards of 4210 are getting approximately 5073 at present.

U.S. Claims Allocated 40%

America-based creditors receive 40 percent of their claims. Assuming that half of U.S. claims constitute half of total claims (~$842 million), they are roughly equally distributed to $336.8 million. The difference is the U.S. legal limitations and lawsuits. The 1.6billion will cover 95 per cent of all claims permitted. That in fact brings the total claims pool to $1.684 billion. Unpaid balances of 84 million can be held back to administrative or disagreements.

When the number of creditors is 100, 000, the mean claim is 16,840. Big claimants (20,000 people, average of $53,550) recovers approximately 41,874 each following this round. Small claimants (80,000 people, average $4,210) get back, in excess of original balances, a sum of $5,073.

On November 11, 2022, FTX filed Chapter 11, having indicated a shortage of 8 billion. The bankruptcy was among the biggest financial frauds in the history of U.S. This third significant allocation with court supervision is based on other smaller tranches. The money will be transferred within 1-3 working days through Bitgo, Kraken or Payoneer.

Market and Historical Perspective

Common recovery of a bankruptcy is only 20-40. The recovery rate of FTX is excessively high (almost close to 95 percent). Small claims of 120.5% represent one of the only few over-compensations in bankruptcy history. The 40 percent limit on creditors in the United States demonstrates that the complexities of jurisdictions decrease payouts.