The FTX saga feels like it just never stops unfolding. Over three years past its shocking collapse in late 2022, developments keep emerging—from courtroom showdowns to creditor paybacks, and the release of key insiders. Here’s a closer look at what’s been happening recently in the world of FTX.
FTX began distributing repayments to its creditors in early 2025—clients began seeing funds as early as February, with significant payouts lined up for spring . A formal effective date for the Chapter 11 reorganization plan was marked on January 3, 2025, setting off a wave of distributions shortly after .
By late May, more than $5 billion in digital assets were already sent to eligible claimants . However, not everything was smooth: about $2.25 billion in claims remain hotly contested, representing roughly 30% of total recognized claims . The estate has reserved around $6.5 billion to resolve these disputes in future rounds.
The Delaware court-approved plan offered payouts averaging around 118% of the value of 2022 holdings—some creditors could even receive up to about 140% . Judges and administrators highlighted the plan as a model example of handling large-scale, complex bankruptcies .
That said, there’s still understandable frustration. Bitcoin’s value—under $20,000 in 2022—is now well above $60,000 for some periods, meaning creditors feel shortchanged despite the favorable percentage payout .
FTX’s bankruptcy estate filed a lawsuit—valued at $1.76–$1.8 billion—against Binance and its ex-CEO Changpeng Zhao. The suit alleges that FTX misused customer funds in the 2021 equity buyback of Binance’s stake, and accuses Zhao of fueling public panic that led to FTX’s downfall .
Binance pushed back aggressively in May 2025, filing to dismiss the suit. They argue the claim is legally faulty, blame FTX’s collapse on internal fraud, and point to bankruptcy code protections that shield such contracts from clawbacks .
Beyond Binance, FTX has pursued legal claims against multiple parties—Bybit (which settled in 2024 for $228 million), SkyBridge Capital, Huobi, and even alleged criminal entities in China . In parallel, challenges are emerging around proposed third-party releases in the plan: The U.S. Trustee has publicly opposed these nondisclosure agreements, citing fairness and legal precedent .
Handling FTX’s intricate collapse hasn’t come cheap. A snapshot of bills from late 2025 shows:
These sums reflect one of the most complex corporate bankruptcies ever managed and underscore the toll taken by legal and recovery teams.
Caroline Ellison—former head of Alameda Research and a prime witness—was released from federal custody in late January 2026, after serving 14 months of her two-year sentence . Her cooperation was pivotal in the trial of Sam Bankman‑Fried, although Judge Kaplan still ordered the forfeiture of roughly $11 billion in assets .
Though the FTX crash sent tremors through crypto markets, late 2025 brought cautious optimism. On-chain data shows institutional accumulation even as retail-focused ETFs lost value . Meanwhile, overall institutional interest in crypto has grown—estimates suggest tens of billions under management in U.S. bitcoin ETFs, and a strong push for governance and custody reforms after FTX’s collapse .
FTX’s bankruptcy story remains far from over. Distributions are underway but many claims remain unresolved. High-stakes lawsuits continue—especially against Binance—while professional fees and administrative complexity remain under spotlight. Insider releases, like Ellison’s, reshape narratives. At the same time, institutional momentum and regulatory interest highlight how the crypto world is evolving post-FTX.
Why are some creditor claims still unpaid?
A sizable portion—around $2.25 billion—is under dispute, comprising nearly 30% of total claims. The estate has earmarked reserves specifically to address these contentious cases in future distributions .
How much will creditors get back?
Most creditors are expected to receive between 118% and 140% of their original claim’s value, based on approved bankruptcy terms, though gains in crypto markets have tempered enthusiasm .
What’s the current status of the lawsuit against Binance?
FTX’s estate seeks to claw back $1.76 billion related to a 2021 share buyback, alleging fraudulent misuse of funds and market manipulation. Binance is moving to dismiss the case, arguing legal deficiencies and safe-harbor protections .
Why are legal and consulting costs so high?
Handling FTX’s tangled multi-entity bankruptcy required extensive legal, financial, and international coordination. Firms like Sullivan & Cromwell and Alvarez & Marsal billed millions, reflecting the effort needed to untangle the collapse .
What does Caroline Ellison’s release mean?
Ellison’s release in January 2026 marks the end of a key chapter. Her cooperation had been instrumental in Sam Bankman‑Fried’s prosecution, giving important context to one of the largest financial fraud cases in recent history .
How has the broader crypto landscape responded?
Despite earlier shocks, institutional confidence seems to be returning. Large inflows into bitcoin ETFs and improved custody norms suggest the sector is maturing, guided in part by lessons learned from FTX’s collapse .
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