FTX Creditors Receive 120% Payouts on Small Claims, Partial on Large Claims

Key Points

1. Claims under $50,000 received 120% payouts in February and May 2025, allowing smaller creditors to recover beyond their initial claims.

2. Claims over $50,000 received a 72.5% payout in May, with the remaining 27.5% expected in additional distributions planned for October and December 2026, and into 2027.

3. Payments are being made under a Chapter 11 plan approved by a bankruptcy judge in Delaware last year.

4. FTX, FTX.US, Alameda Research, and over 100 affiliated companies filed for bankruptcy on November 11, 2022, with Sam Bankman-Fried resigning as CEO and later receiving a 25-year sentence for fraud.

5. Celebrities like Tom Brady, Gisele Bündchen, Kevin O’Leary, and Stephen Curry were largely cleared in FTX lawsuits, while Shaquille O’Neal agreed to pay $1.8 million to settle a class-action lawsuit.