FTX Creditors Press for $2.2 B in Disputed Claims

FTX’s Bankruptcy Estate Inches Closer to Resolution as $2.25 Billion in Claims Remains in Limbo
Wednesday, June 12, 2025 | Press News

More than two years after FTX’s dramatic collapse, customers have already recovered over $16 billion through the exchange’s ongoing bankruptcy proceedings. Yet roughly $2.25 billion—about 30 percent of all claims—remains contested, delaying the estate’s path to final wind-down.

$16 Billion Returned, but Disputes Persist

As of the May 30 distribution, FTX’s estate delivered more than $5 billion in digital assets to users who completed their paperwork. Court filings from June 2024 indicated the estate had assembled between $14.7 billion and $16.5 billion for creditor repayment.

However, a significant tranche—$2.25 billion—is still held in reserve pending resolution of formal objections. According to Sunil, a member of the Customer Ad-Hoc Committee, the numbers break down as follows:

“Current allowed claims: $7.5 billion. Total estimated claims: $10.6 billion. Thirty percent are disputed—legitimate ones will get cleared.”

FTX has earmarked $6.5 billion specifically to cover these contested claims in the next round of distributions.

“I expect most disputed claims to clear in the upcoming round,” Sunil told Reuters, “though Chinese creditors—who represent 8 percent of all claims—face additional delays until we secure a distribution partner equipped to handle payouts in China.”

KYC Hurdles Trip Up Small Creditors

While institutional and large-scale creditors have largely navigated the process smoothly, many retail claimants report lengthy “Know Your Customer” (KYC) bottlenecks—especially in jurisdictions like the Bahamas, where FTX was headquartered.

On June 11, user Big Penger posted on X:

“Any info on Bahamas KYC pending? No response for five months.”

Another claimant, Sal Wins, described repeated requests for detailed proof of income despite filing a modest claim under $5,000:

“They’re interrogating me about my bank statements for days. It’s hard to follow and feels excessive.”

These KYC delays not only frustrate individual users but also complicate the estate’s broader timeline for completing distributions.

Adding Payoneer to Speed Cross-Border Payouts

To address these snags—and to bolster its existing infrastructure—the FTX estate recently onboarded Payoneer as its third distribution partner, alongside BitGo and Kraken. The addition aims to streamline cross-border transfers for retail customers in over 190 countries, particularly those previously hampered by limited payment-rail options.

“With three providers now onboard, we believe we can resolve most of the residual KYC and routing issues before the next tranche,” a representative for the FTX estate said in a statement.

Payoneer’s global footprint should prove especially beneficial for markets where cryptocurrency exchanges and custodians have limited presence or face tighter regulatory scrutiny.

Why the Remaining $2.25 Billion Matters

For thousands of FTX creditors still awaiting their full recovery, the final $2.25 billion represents more than just capital—it’s a test of the estate’s promise to make victims whole. Clearing these disputed claims would unlock liquidity for smaller investors and institutional players alike, underpinning confidence in the bankruptcy process for other failed crypto platforms.

Industry observers emphasize that resolving the hold-ups will also set a precedent for how complex, cross-border cryptocurrency bankruptcies are handled in the future.

“This is one of the largest and most complicated digital-asset estates ever,” says restructuring expert Laura Chen.

“How FTX navigates KYC, contested claims, and multi-jurisdictional payouts will shape best practices for years to come.”

What Comes Next

1. Dispute Adjudication: Over the coming weeks, the estate’s claims officers and legal teams will review formal objections, aiming to convert valid disputes into allowed claims.
2. Chinese Creditor Coordination: Finding a reliable payout mechanism for Chinese users remains a priority. FTX insiders suggest talks with regional payment processors are already underway.
3. Third Distribution Run: Once objections clear and KYC hurdles abate, the next tranche—potentially totaling several billion dollars—will be scheduled.

“We’re in the home stretch,” says Sunil. “The majority of these disputes are straightforward. Once we iron out a couple of jurisdictional quirks, creditors will see their full entitlements.”

Bottom Line: With over $16 billion already returned and a final $2.25 billion in dispute, FTX’s bankruptcy estate is nearing the finish line. Resolving the remaining contested claims—and completing KYC processes for all regions—will mark a major milestone in bringing closure to one of the most spectacular collapses in cryptocurrency history.

For ongoing coverage of FTX’s recovery process, creditor updates, and digital-asset litigation, visit Press News.