FTX Bankruptcy Payouts Reveal Stark Disparities: Small Creditors Reap 120% While Large Claims Settle at 72.5%

The FTX bankruptcy proceedings have reached a pivotal stage, with creditor repayments highlighting significant differences based on claim size. Smaller creditors, those with claims under $50,000, have received substantial 120% payouts in February and May 2025, effectively turning their losses into profits. In contrast, larger claimants have only recovered 72.5% of their claims as of May, with the remainder deferred through 2025. This disparity underscores the complex dynamics of bankruptcy settlements in the cryptocurrency space, where smaller investors sometimes fare better than institutional players. The situation continues to evolve as FTX navigates its financial restructuring, with further updates expected in the coming months.

FTX Creditors See Divergent Payouts: Small Claims Recover 120%, Large Claims at 72.5%

FTX's bankruptcy proceedings have entered a critical phase, with creditor repayments revealing stark disparities based on claim size. Smaller creditors—those holding claims under $50,000—received windfall 120% payouts in February and May 2025, effectively turning their losses into gains. Meanwhile, larger claimants saw only 72.5% of face value returned as of May, with remaining recoveries deferred through 2027.

The structured repayment plan, overseen by custodians BitGo and Kraken, includes post-petition interest projections of 40%-80%. This bifurcated approach reflects the Delaware bankruptcy court's prioritization of retail investors—a rare outcome in crypto insolvencies where institutional creditors typically dominate recoveries.

John J. RAY III's restructuring team continues managing distributions under the Chapter 11 plan approved last year. The timeline underscores the complexity of unwinding FTX's tangled finances, which collapsed in November 2022 amid revelations of commingled funds between FTX, FTX.US, and Alameda Research.

$70M Capital Injection Fuels Boba Network's Layer-2 Expansion Amid FTX Token Resolution

Boba Network secures a $70 million war chest from Awaken Foundation and LDA Capital, marking a pivotal moment for the AI-focused Layer-2 blockchain. The funding accelerates HybridCompute development and dApp ecosystem growth while resolving legacy FTX-held BOBA tokens.

"This capital validates our vision for decentralized AI infrastructure," said David Acutt of Boba Governance Foundation. The injection targets Core protocol upgrades and developer incentives, positioning Boba as a magnet for Web3 builders.

Enya Labs CEO Alan Chiu emphasized the strategic timing: "We're bridging AI and blockchain at inflection point adoption. These resources let us recruit elite talent and onboard enterprises." The announcement coincides with cleared FTX Token overhang, removing a key uncertainty for network participants.