FTX has distributed approximately $7.1 billion across three payout rounds to creditors of the collapsed crypto exchange, marking significant progress in one of history’s largest cryptocurrency bankruptcies. The bankrupt estate expects to conduct its next distribution in January 2026, pending confirmation in December, while convicted founder Sam Bankman-Fried continues to challenge the official narrative from federal prison, creating ongoing controversy around the proceedings.
about FTX Distributes $7.1B to Creditors, Next Payout Set for 2026Sunil Kavuri
0 posts last weekFTX Creditors Targeted by Fake Airdrop Scam
FTX creditors, already reeling from the exchange’s catastrophic collapse, are confronting a new wave of sophisticated phishing attacks. These scams exploit sensitive data stolen in the Kroll breach, luring victims with promises of a fake ‘ASTER’ token airdrop through fraudulent claims portals designed to drain their digital wallets. As creditor advocate Sunil Kavuri sounds the alarm, the timing of these attacks—coinciding with progress on repayments—has boiled over into legal action against Kroll. In a parallel development, the X account of convicted founder Sam Bankman-Fried has been resurrected by a friend, revealing a monitored prison correspondence address as he continues his appeal.
about FTX Creditors Targeted by Fake Airdrop ScamFTX Freezes Payouts to 49 Countries Over Legal Concerns
The FTX Recovery Trust has informed the Delaware bankruptcy court that it will treat creditor claims from 49 foreign jurisdictions as disputed, citing local legal restrictions on crypto trading or distribution agents. Affected countries include China, Nigeria, and Zimbabwe, with China accounting for 82% of the frozen claims’ dollar value. Creditors in these regions must receive a ‘Restricted Jurisdiction Notice’ and have 45 days to object, requiring a sworn statement accepting US court jurisdiction. Unresolved disputes will result in forfeiture, and the trust will seek legal clarity before releasing funds. The move underscores the challenges of cross-border crypto bankruptcy proceedings.
about FTX Freezes Payouts to 49 Countries Over Legal ConcernsBitGo Advances FTX Repayment Amid Phishing Threats
BitGo has reportedly begun the second phase of FTX’s creditor repayment process, with user accounts credited but funds locked until May 30. The FTX Recovery Trust confirmed plans to distribute over $5 billion to approved creditors via BitGo and Kraken, following an earlier $1.2 billion payout in February. However, dissatisfaction persists among creditors due to repayments being pegged to 2022 crypto prices rather than current valuations, with most refunds issued in fiat. Additionally, phishing scams mimicking BitGo, Kraken, and FTX communications have surged, prompting warnings to manually verify website addresses to avoid fraud.
about BitGo Advances FTX Repayment Amid Phishing ThreatsShaq Settles FTX Lawsuit Amid Crypto Endorsement Fallout
Basketball Hall of Famer Shaquille O’Neal has reached a confidential settlement with investors who sued him over his promotional role for bankrupt crypto exchange FTX. The agreement, signed April 1, awaits court approval. O’Neal was among several celebrities targeted for endorsing FTX before its 2022 collapse, with investors claiming these promotions contributed to their losses. This marks O’Neal’s second crypto-related legal resolution, following an $11 million NFT settlement last year. Meanwhile, FTX’s bankruptcy process continues, with new creditor payments scheduled for May amid warnings about phishing scams targeting affected users through leaked data.
about Shaq Settles FTX Lawsuit Amid Crypto Endorsement FalloutCrypto Market Faces Downturn as FTX Payouts Begin and Bitcoin Declines
Bitcoin (BTC) is poised for a prolonged downturn as FTX begins repaying customers, with significant declines expected across the crypto market. Analysts warn that the recent sell-off of Binance’s BTC holdings and rising inflation could exacerbate the situation, potentially driving Bitcoin down to $86k before a major crash. Meanwhile, many FTX creditors, traumatized by their losses, may refrain from reinvesting in cryptocurrencies, further impacting market dynamics.
about Crypto Market Faces Downturn as FTX Payouts Begin and Bitcoin DeclinesFTX Begins Repaying Creditors After Long Wait Amid Market Challenges
FTX’s bankruptcy estate has begun repaying creditors, distributing $1.2 billion to those with claims under $50,000 after 27 months of uncertainty. Sunil Kavuri, an advocate for affected customers, warns against risky investments with the returned funds, urging caution amid ongoing market volatility. The estate still holds over $16 billion for future repayments to larger claim holders.
about FTX Begins Repaying Creditors After Long Wait Amid Market ChallengesFTX Announces May 2025 Repayment Round for Creditors and Customers
FTX has scheduled its next repayment round for May 30, 2025, targeting creditors with verified claims, including customers and vendors. Creditors must verify claims by April 11 to qualify, with expectations that 98% will receive at least 118% of their claim value in cash. The total distribution is estimated between $14.5 billion and $16.3 billion, as the crypto market reacts to the potential impacts of these repayments.
about FTX Announces May 2025 Repayment Round for Creditors and CustomersFTX Begins Bitcoin Transactions Ahead of Creditor Repayments
FTX has initiated Bitcoin transactions ahead of creditor repayments set for February 18, prioritizing customers with claims under $50,000. A wallet linked to FTX moved 0.3 Bitcoin in three transactions, possibly as test transfers for the upcoming payouts. Eligible creditors can expect full reimbursement of their claims plus 9% annual interest from November 2022, with projections indicating that around 98% of users will receive 119% of their claim value.
about FTX Begins Bitcoin Transactions Ahead of Creditor RepaymentsPhishing Scams Target FTX Creditors Ahead of Upcoming Repayments
A phishing attack is targeting FTX creditors just before the exchange begins its repayment process, following a potential data leak that exposed users’ names and email addresses. Scammers are impersonating FTX, urging victims to verify recovery phrases through malicious links. As repayments for small creditors commence on February 18, caution is advised against unsolicited emails, with claimants required to confirm account details via the claims portal to avoid delays.
about Phishing Scams Target FTX Creditors Ahead of Upcoming RepaymentsFTX Begins Creditor Repayment Process Amid Market Concerns and Security Issues
FTX’s repayment process for creditors begins in February 2025, prioritizing those with claims under $50,000, totaling around $1.2 billion. Creditors must complete verification forms by January 20 to qualify for initial payments, amid concerns over phishing scams and market volatility from asset liquidations, particularly in Solana tokens. The repayments could influence the broader cryptocurrency market, fostering optimism for recovery despite ongoing disputes regarding FTX EU’s ownership.
about FTX Begins Creditor Repayment Process Amid Market Concerns and Security IssuesFTX Bankruptcy Managers Face Scrutiny Over Excessive Spending and Scams
FTX creditor Lidia Favario has raised alarms over the extravagant spending by bankruptcy managers, citing excessive expenses on luxury accommodations and transportation that contradict DOJ guidelines. She urged the court to enhance expense reviews to ensure accountability, as many creditors have suffered significant losses. Additionally, creditor Sunil Kavuri warned of scam emails targeting FTX creditors, advising them to rely solely on the official claims portal for updates, as repayments are not expected before March 2025.
about FTX Bankruptcy Managers Face Scrutiny Over Excessive Spending and Scams