The ongoing recovery efforts for the collapsed crypto exchange <b>FTX</b> have reached a major milestone, with the bankruptcy estate having already distributed a reported <b>$7.1 billion</b> to creditors across various claims classes. This significant recovery is part of the comprehensive <b>Chapter 11 reorganization plan</b> overseen by the FTX Recovery Trust, signaling remarkable progress in unwinding what was once considered one of the most complex financial frauds in history.
<h2>Multi-Phase Distribution Strategy</h2>
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The distribution of funds is being executed in phases, with the bankruptcy estate aiming to return substantially more than the original dollar amount owed to non-governmental creditors. The overall recovery is a culmination of liquidating recovered assets—including high-value stakes in companies like Anthropic—and successfully litigating to claw back misappropriated funds.

Earlier distribution rounds have prioritized smaller claims and specific customer classes, such as U.S. customers (Class 5B) and dotcom customers (Class 5A), who have seen cumulative recovery percentages climb towards full repayment of their dollar-based claims from November 2022. The Recovery Trust is now gearing up for the next distribution round, which will allocate more funds to these and other entitlement classes.
<h2>The Valuation Controversy</h2>
Despite the significant dollar amounts being returned, a point of contention remains the <b>valuation date</b> used for repayments. The bankruptcy estate has held firm on calculating claims based on the <b>November 2022 crypto asset prices</b>, when the exchange collapsed.

This approach has drawn sharp criticism from many creditors who feel undercompensated, arguing that the true value of their lost assets—like Bitcoin and <a href="https://www.cryptoknowmics.com/news/solana-aims-to-pioneer-on-chain-ipos-unveiling-a-vision-of-everything-tokenized/">Solana</a>—should reflect their dramatic increase in price during the market’s recovery. Critics point out that while the dollar recovery may exceed 100% for some, the real-term recovery in crypto-equivalent terms is much lower. Regardless, the Trust is moving forward, utilizing distribution partners like BitGo and Kraken to expedite the transfer of funds globally.

FTX Bankruptcy Estate Recovers $7.1 Billion; New Payouts Planned

The FTX Recovery Trust has recovered $7.1 billion for creditors so far and is preparing a new distribution phase as part of its ongoing Chapter 11 reorganization plan.

FTX Bankruptcy Estate Recovers $7.1 Billion; New Payouts Planned

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