Author: Pzai, Foresight News
The fate of FTX has come to an end.
On February 8, the collapsed crypto exchange abandoned its restructuring plan and announced the start of initial payouts to the first batch of creditors.
FTX stated on its official social media platform: "It will begin the initial distribution to eligible creditors in the Chapter 11 Reorganization Convenience Class Plan on February 18, 2025. Eligible creditors should expect to receive their distributions within 1 to 3 business days starting on February 18, 2025."
FTX was founded in 2017 by former Wall Street trader Sam Bankman-Fried (SBF) as a crypto exchange, which had a huge impact on the US market and was once the second largest crypto trading platform globally, second only to Binance. However, after the exposure of the chaotic financial situation between FTX and Alameda, another crypto company founded by Sam Bankman-Fried, it went bankrupt within a week due to a bank run.
Since the bankruptcy of FTX in 2022, the crypto mogul Sam Bankman-Fried and his FTX have hastily entered the historical dust. The FTX bankruptcy restructuring plan, which involves the assets of tens of thousands of users, has experienced twists and turns since 2023 and finally saw a key progress in 2025.
Payout Plan Details
According to the Bloomberg report, for the specific payout plan, small creditors (with claims not exceeding $50,000) account for 98% of the total number of creditors, and they will receive 118% of the payout, i.e., the principal plus 9% annualized interest. For large creditors, the payout ratio varies depending on the type of claim, with a maximum of 142%.
In addition, non-governmental creditors will also receive compensation for the principal plus interest. This payout plan aims to maximize the protection of creditors' interests and minimize their losses. Creditors need to complete KYC verification and receive the funds through agent institutions such as Bitgo and Kraken by January 20, 2025, to ensure the authenticity and legality of their identities.
FTX's "Crypto Legacy"
As one of the crypto leaders at the time, FTX has left behind a lot of legacy after its collapse.
According to multiple media reports, the revised restructuring plan submitted by the company to the US Bankruptcy Court on May 7, 2024 shows that once all assets are sold, the company will have $14.5 billion to $16.3 billion in available funds. Currently, FTX owes its customers and other non-governmental creditors about $11 billion. This means that FTX's creditors are likely to receive the fiat currency value of the crypto assets they held at the time of bankruptcy.
However, it is worth noting that on February 12, according to Arkham's monitoring, FTX/Alameda conducted a monthly SOL redemption and withdrawal: they redeemed 184,162 SOL from staking and distributed them to 23 addresses. Since November 2023, FTX/Alameda has cumulatively redeemed and withdrawn 4.629 million SOL through this method, with an average withdrawal price of $116.2. FTX/Alameda's staking address still has 6.338 million SOL staked, worth $1.27 billion. It is currently unclear how this asset will be handled.
