FTX Distributes $7.1B to Creditors, Next Payout Set for 2026

According to FTX creditor representative Sunil Kavuri, the bankrupt exchange has completed three distinct payout rounds totaling approximately $7.1 billion since its November 2022 collapse. The distribution process began with a $454 million payment on February 18 specifically targeting claims under $50,000, providing relief to smaller creditors. This was followed by a substantially larger $5 billion payout on May 30 that encompassed both sub-$50,000 claims and larger creditor obligations, representing the single largest distribution to date.

The most recent tranche of $1.6 billion was distributed on September 30, again covering both claim categories. This systematic approach to creditor repayments has unfolded over nearly three years since the exchange’s dramatic failure. Kavuri’s assessment places total FTX assets in the range of $16-17 billion, suggesting that approximately half of the available funds have now been returned to creditors through these three distribution rounds.

The FTX Recovery Trust recently withdrew its controversial motion that sought to restrict payouts to creditors in nearly 50 foreign jurisdictions, including China, Saudi Arabia, Russia, and Ukraine. Originally filed in July, the motion aimed to pause distributions in countries with unclear or restrictive cryptocurrency regulations, citing compliance concerns. However, the proposal faced intense backlash from affected creditors who argued it would unfairly delay their recoveries.

The withdrawal of this motion represents a significant victory for international creditors and removes a potential obstacle for future distributions. This development emerged just days before the latest payout announcement, indicating the bankruptcy estate’s responsiveness to creditor concerns while navigating complex international regulatory landscapes. The resolution ensures that creditors in these jurisdictions will receive their distributions alongside others in the upcoming rounds.

Despite being convicted and incarcerated, Sam Bankman-Fried continues to actively participate in the bankruptcy conversation, attempting to reshape the narrative around FTX’s collapse. Earlier this month, SBF re-emerged to question the motives of the bankruptcy estate and implied that FTX’s failure resulted not from fraud, misappropriation, or reckless leverage, but from something closer to sabotage or bureaucratic obstruction.

This week, Bankman-Fried amplified these claims by endorsing a satirical post accusing current CEO John J. Ray III of intentionally keeping a ‘perfectly solvent’ platform in bankruptcy to generate record professional fees and destroy estate value. SBF commented that ‘this is basically what happened,’ despite forensic accountants, prosecutors, and bankruptcy experts repeatedly labeling this narrative as false and misleading. His long-dormant X account also posted a 14-page document claiming FTX ‘was never insolvent’ and could have been sitting on a $136 billion portfolio today if lawyers had not intervened.

These assertions triggered immediate backlash from the crypto community. On-chain investigator ZachXBT directly challenged SBF to explain the alleged $40 million payment to Chinese authorities that he claims was hidden from the public and prosecutors. Venture capitalist Adam Cochran stated that these continued attempts to recast the collapse demonstrate SBF remains unrepentant and unwilling to accept responsibility for the damage inflicted on millions of users. Legal experts and former creditors quickly noted that these arguments mirror claims already rejected in court throughout 2023 and 2024, with forensic audits having traced billions in missing customer funds.

With the next distribution round currently expected in January 2026, pending a record date confirmation in December, creditors face approximately fifteen months before the next significant payout. This timeline allows the bankruptcy estate to complete necessary administrative processes while addressing any remaining legal complexities. The estimated $16-17 billion in total assets suggests that additional substantial distributions beyond the current $7.1 billion remain possible.

The withdrawal of the international payout restrictions and the established pattern of regular distributions provide creditors with greater certainty about the recovery process. However, the ongoing public disputes with Sam Bankman-Fried create additional complexity for the bankruptcy estate as it works to maximize creditor recoveries while defending its actions against persistent criticism from the exchange’s convicted founder. The coming months will determine whether the estate can maintain its distribution momentum while managing these competing narratives.