FTX bankruptcy-claim valuation

A recovery percentage needs a denominator

A statement that FTX customers would receive more than 100% is incomplete unless it identifies what the percentage measures. A distribution against an allowed dollar claim is not the same as returning the quantity of cryptocurrency that a customer originally deposited. The distinction matters whenever the asset’s later market value differs from the value used in the claim.

FTX’s 7 October 2024 announcement of plan confirmation said approximately 98% of creditors by number were expected to receive about 119% of their allowed claims within 60 days of the plan’s effective date, subject to requirements. That was a description of a plan and a specified group, not proof that every customer had already received that amount. FTX’s plan-confirmation announcement.

A hypothetical example of the difference

Assume a customer’s deposited asset is represented by an allowed claim of $10,000. If the customer receives $11,900, the recovery is 119% of that claim. Now assume replacing the original quantity of the asset would cost $25,000 at the comparison date. The payment buys 47.6% of that quantity. Both calculations can be correct because they answer different questions.

Illustrative amounts, not an individual FTX claim calculation

Comparison	Calculation	Result
Payment relative to the allowed claim	$11,900 ÷ $10,000	119%
Payment relative to assumed replacement cost	$11,900 ÷ $25,000	47.6%
Replacement-cost shortfall	$25,000 − $11,900	$13,100

The second comparison is an economic illustration. It does not determine a creditor’s legal entitlement or replace the plan’s valuation rules. A careful account should present the claim currency and relevant dates alongside the percentage, rather than selecting whichever denominator produces the most favourable headline.

Allowed, eligible and paid are different states

The FTX distribution dashboard FAQ distinguishes unresolved or disputed claims from claims eligible for distribution. It lists circumstances such as claims still under review, jurisdictions under review or not eligible, and reconciliation with payments from other proceedings. A distribution entry in a plan is not equivalent to cash received by every person with an account. FTX distribution dashboard FAQ.

The same FAQ treats post-petition interest differently according to claim class and the plan’s rules. Do not apply a convenience-class statement automatically to a non-convenience claim. If an article gives a payment percentage, it should identify the class, whether it includes interest and whether it describes an estimate, an announced distribution or an actual payment.

Follow the payment record, not an unsolicited message

Distribution service providers can offer different payment methods, with different fees, minimums and geographical restrictions. The official provider information is relevant to the delivery step; it does not establish that a particular claim has been allowed. FTX provider information.

A message promising to “unlock” a bankruptcy payment should be checked against the official case records and portal reached independently. Preserve the message and requested payment destination. A request for a seed phrase or a transfer to an unrelated wallet cannot be justified merely by displaying the FTX logo. This is the same separation between a genuine proceeding and an impersonated payment instruction described in advance-fee recovery scams.

For the underlying failure, read the FTX collapse. Recoveries, prosecution and the original diversion of customer assets belong in the same history, but none of those records should be used to erase the others.

Sources

• FTX: plan confirmation, 7 October 2024
• FTX: distribution status and interest
• FTX: distribution providers
• US DOJ: Samuel Bankman-Fried sentencing, 28 March 2024

Sources checked on 13 September 2026. Payment methods and eligibility can change; consult the official case information for an individual claim.