Author
Hongji Feng
Author
Hongji Feng
Share
Key Takeaways:
- FTX claims now total $11 billion, with $1.4 billion under dispute.
- Restricted claims include $470 million tied to sanctions or jurisdictional limits, led by Chinese creditors.
- Shaquille O’Neal agreed to a $1.8 million settlement, the first among FTX celebrity endorsers.
FTX creditor claims have reached an estimated $11 billion, with $1.4 billion currently unresolved, according to a social media post published by creditor activist Sunil Kavuri on July 7.
In court filings dated June 27, the FTX Recovery Trust detailed the composition of disputed claims. Roughly $470 million involve claimants in jurisdictions with restrictions on cryptocurrency use or possible sanctions exposure.
Chinese Creditors Lead Restricted Pool in FTX Case
Another $290 million are linked to claimants who failed to complete Know Your Customer (KYC) procedures in The Bahamas. An additional $660 million of claims have been flagged for potential litigation or are undergoing reconciliation, the filing said.
The document, submitted in Delaware bankruptcy court, also noted that the Disputed Claims Reserve has been revised from its original estimate. The revised figure now stands at $4.6 billion, down $1.93 billion from the initial amount.
Of the restricted $470 million, Chinese creditors account for approximately $380 million, or 82% of that category, according to Kavuri’s summary. The Trust is expected to seek court approval for a separate distribution process for sanctioned or restricted claimants.
The total pool of disputed claims remains under review, and the Trust continues to reconcile outstanding amounts before finalizing any disbursements to eligible creditors.
Shaquille O’Neal Reaches $1.8M Settlement
Former NBA star Shaquille O’Neal has agreed to pay $1.8 million to settle claims brought by FTX investors, according to court filings in the U.S. District Court for the Southern District of Florida. The proposed deal marks the first celebrity settlement related to the failed exchange’s promotion.
O’Neal was named in a May 2023 lawsuit over his endorsement of FTX in a 2022 television advertisement. Plaintiffs alleged that his promotion contributed to investor losses following the exchange’s collapse that same year. O’Neal’s legal team confirmed the resolution, stating they were “pleased to have this matter behind us.”
Other public figures, including Tom Brady and Kevin O’Leary, have also been sued for their ties to FTX but have not reached settlements. In May, a Florida judge dismissed several related claims against other celebrity defendants.
The FTX case has become a reference point for how crypto failures ripple beyond core financial claims. Legal actions against promoters, shifts in recovery expectations, and cross-border enforcement efforts are testing how jurisdictions manage digital asset collapses in practice.
Frequently Asked Questions (FAQs)
Some claimants are based in jurisdictions with sanctions or crypto restrictions, requiring court-approved mechanisms for potential payouts.
While O’Neal’s settlement may influence other defendants, most cases remain open, and courts have already dismissed several claims.
The FTX Recovery Trust continues to reconcile disputed claims before finalizing distributions, with the current reserve revised to $4.6 billion.
Credit: Source link
