Live·Started Sep 1, 2017

The FTX Empire: From Crypto King to Federal Prison

A comprehensive look at the rise of Sam Bankman-Fried’s crypto empire, the $8 billion fraud that brought it down, and the ongoing 2026 recovery efforts to repay millions of victims.

by Timelined

Curator · 2 timelines

#ftx #crypto #bankruptcy #sam-bankman-fried #alameda-research

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May 2

Updated

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Nov 2022

Fri, Nov 11

Key Moment

FTX Files for Chapter 11 Bankruptcy

The $32 billion empire collapses in just nine days

FTX, Alameda Research, and 130 affiliated entities file for bankruptcy. SBF resigns as CEO and is replaced by John J. Ray III. Ray famously states, "Never in my career have I seen such a complete failure of corporate controls."

→ www.reuters.com

Oct 2024

Mon, Oct 7

Key Moment

The $16 Billion Bankruptcy Plan Wins Approval

Victims to get "118% back," but controversy remains over 2022 prices

U.S. Bankruptcy Judge John Dorsey approves the FTX reorganization plan, which clears the way for the estate to begin distributing more than $14 billion in recovered assets. The plan promises that 98% of creditors will receive at least 118% of their allowed claims in cash. However, the "allowed claim" is based on the value of the cryptocurrency at the time of the bankruptcy filing in November 2022, when Bitcoin was trading at roughly $16,000. Because crypto prices skyrocketed in 2024, many creditors feel they are being robbed of the "bull market" gains. Despite hundreds of objections, the court rules that "dollarizing" the claims was the only legally feasible way to manage the massive liquidation.

→ www.reuters.com

Nov 2024

Sun, Nov 10

FTX Sues Binance Over 2021 Share Repurchase

Estate seeks to claw back funds from rival exchange

The FTX estate files a lawsuit against Binance and its former CEO Changpeng Zhao, seeking to recover $1.76 billion. The lawsuit alleges that SBF fraudulently used customer funds to buy back Binance’s stake in FTX in 2021.

→ www.claimsjournal.com

Jan 2025

Fri, Jan 3

FTX Chapter 11 Plan Becomes Effective

The estate officially exits bankruptcy mode to distribution mode

The reorganization plan becomes effective, setting the "Record Date" for distributions. This marks the transition from legal battling to the mechanical process of returning billions to victims.

→ www.prnewswire.com

Feb 2025

Tue, Feb 18

Key Moment

Initial Distributions Begin for Convenience Class

The first real money starts going back out

The first wave of payments begins for "Convenience Class" creditors (claims under $50,000). These users receive roughly 120% of their 2022 account value via Payoneer, BitGo, or Kraken.

→ www.prnewswire.com

Aug 2025

Sat, Aug 30

Third Distribution Begins

The estate moves beyond the smallest claims

FTX said its third distribution would send roughly $1.6 billion to allowed convenience and non-convenience classes, bringing cumulative recoveries materially higher across the main customer classes.

→ www.prnewswire.com

Mar 2026

Tue, Mar 31

Key Moment

$2.2 Billion Creditor Payout Commences

Fourth round of distributions brings total recovery to $10 billion

The FTX Recovery Trust begins its fourth distribution round, releasing $2.2 billion to eligible creditors. This brings the total amount returned to victims to approximately $10 billion. Many creditors remain frustrated that payouts are based on 2022 prices, missing the subsequent crypto bull market.

→ www.binance.com

End of timeline · 7 entries