The Coin Bureau x Paxtibi: How To Recover Your FTX Funds

Recovering your FTX funds should not take years. Thousands of creditors are still stuck in KYC delays, restricted jurisdictions and stalled distributions.

If you want a faster and clearer path to your payout, our team can help. Email us at [email protected], and we will connect you with Paxtibi, the leading specialist in FTX claim recovery and early liquidity. You can unlock your claim, avoid long delays, and get your funds moving again.

The Rise and Fall of FTX

FTX is one of the most dramatic rise and fall stories in crypto and in the wider world of startups and venture capital. The exchange launched in 2019. Only two years later, in July 2021, it had more than one million users. It had also become the third-largest crypto exchange by trading volume. That level of growth was rare before the AI wave. Then ChatGPT arrived and reached 100 million users in its first two months. FTX had been the benchmark until that moment.

Much of the early success of FTX came from its founder, Sam Bankman-Fried. He was known as SBF. He became the golden boy of the 2021 bull market. His background helped. He came from a Stanford family. He studied at MIT. He worked at Jane Street. He also founded Alameda Research, his own crypto trading firm. These details helped him build a profile that inspired trust. It convinced major venture capital firms in Silicon Valley. It convinced millions of customers around the world.

Everyone in crypto knows what happened next. The collapse of FTX became a true black swan event. It helped trigger the bear market in 2022 and 2023. Bitcoin fell to the lows of $16,000. Entire ecosystems came under threat. Solana was one of them because of its close ties to FTX.

Today SBF is back in the news. His lawyers are trying to overturn his 25-year prison sentence for fraud and conspiracy. He is also speaking through his public X account. He claims that a friend manages the account. He is trying to reshape his image. He wants to change the story of why FTX collapsed.

The core debate focuses on insolvency. FTX filed for Chapter 11 in November 2022. The controversy is fueled by the high recoveries that customers are now receiving. These recoveries are unusual. In most bankruptcies, customers receive far less than 100%. A company files for bankruptcy when it cannot cover its liabilities with its assets.

FTX is now paying out more than 100% of customer claims. This supports SBF’s argument that FTX was illiquid but not insolvent. Illiquidity means not having enough cash at a specific moment. Insolvency means not having enough assets at all. SBF describes the crisis as a sudden shortage of cash. He says the exchange held enough assets, but many were locked or hard to sell.

The illiquidity came from how FTX handled customer funds. Customer assets went into illiquid bets. FTX bought large amounts of Solana and Sui that were locked until 2028. It invested in equity in Robinhood, Anthropic AI, Genesis Digital Assets and SpaceX. It also spent more than $300 million on real estate. None of these positions could be liquidated quickly when customers rushed to withdraw.

The debate is now intensifying. SBF says he was pushed into bankruptcy by the law firm Sullivan and Cromwell. He says they were motivated by the financial upside of managing the bankruptcy rather than the long-term survival of the business. He points to financing offers he says he received during the final days. One was a $4 billion liquidity line from Justin Sun’s Tron Foundation. Another was a $2 billion to $4 billion equity proposal from Nomura, the largest investment bank in Japan.

He also highlights the fees collected by Sullivan and Cromwell. These fees have passed $1 billion. This does not include the $41 million compensation for John J Ray III, the current CEO of the FTX Recovery Trust. Ryan Miller, the FTX legal advisor, once called him the S and C guy.

He also points to the massive appreciation in asset values. Bitcoin went from $16,000 to a new all-time high of $126,000. Solana went from $7 to $293. Many equity stakes also exploded in value. The original FTX stake in Anthropic AI is now worth $14.3 billion. That one position is worth more than all customer claims. The Robinhood stake is now worth $7.6 billion.

This is the backdrop to the renewed fight over the legacy of FTX. SBF says advisors acted recklessly. Others say he took irresponsible risks with customer funds. The truth sits inside the largest bankruptcy in the history of crypto.

The Bankruptcy Plan Explained

But most of the public drama around FTX ignores what really happened. Many of the “paper profits” that dominated social media never became real money. The actual story went in a very different direction once the liquidators took control.

The liquidators assumed control of FTX on November 17, 2022. From that point, they began the long process of reconciling the assets and liabilities across more than 125 related entities. They also began selling both liquid and illiquid assets. The goal was simple. Convert everything possible into cash and pay creditors.

So what are FTX customers actually receiving?

The final bankruptcy plan answers that. It was approved on Oct. 8, 2024, by United States Bankruptcy Judge John Dorse. The plan divides customers into two groups. The first group includes customers with $50,000 or less at the time of the bankruptcy. This is class 7A. The second group includes customers with more than $50,000. This is class 5A.

The timing is crucial. All crypto balances were frozen and then converted into dollars at the prices on the day of the bankruptcy. Those prices reflected the bottom of the bear market. Creditors are not getting their crypto back. They are also not receiving the 2025 value of those assets. This decision created anger among many creditors because crypto rallied sharply after 2022.

Repayment timing also matters. Smaller creditors receive a single settlement. Larger creditors receive a higher percentage but over several years. According to the plan, customers with less than $50,000 get 120.5% in one payment. Customers with more than $50,000 get at least 144% , but in multiple installments.

Payments have already begun. The first distribution went out in late January 2025. The second followed in May. The third was scheduled for September. Class 5A creditors have already recovered 78%  of their claim value. They received 72% in the first tranche and 5% in a catch-up payment.

The difference between the two classes comes from operational efficiency. Smaller customers make up 98% of the total customer base. But they represent only 20% of the total account value. Paying them in one transaction reduces the number of payouts and simplifies the process.

Larger claim holders must wait because the estate does not yet have enough cash to pay them in full. The liquidators still need to sell the remaining illiquid assets. They are also pursuing other recovery channels. These include rejecting illegitimate claims, seeking wins in lawsuits such as the cases against Binance and Genesis Digital Assets, and recovering funds stolen in the $400 million hack that occurred just before the collapse.

The recovery has been large enough not only to make customers whole but to exceed 100%. There is even enough money to partially compensate equity investors and employees who held FTX stock. They will receive a combined $230 million.

How To Recover Funds

The recovery amounts are clear because they are laid out in the official bankruptcy plan. The process to receive them has been far more complex. This is still a bankruptcy case. FTX was simple and user-friendly during its life. Filing a proof of claim is not.

Customers who were eligible to file a proof of claim received an email from the liquidators. The sender was [email protected]. The subject was “FTX - Your Scheduled Claim Information and Unique Customer Code.”

The Unique Customer Code is essential. It is the identifier for your claim. You can also find it on claims.ftx.com. Log in with the same credentials used on the original FTX platform. The code appears in the top right corner. Anyone who has filed a proof of claim and is waiting for payment is already familiar with this portal.

The United States process, administered by Kroll, follows nine steps.

• STEP 1 is the authentication process. You must prove ownership of the registered email.
• STEP 2 and STEP 3 are the KYC checks. These include proof of identity and proof of address. Some customers must also provide proof of funds.
• STEP 4 and STEP 5 involve accepting the balance of crypto assets held on the platform.
• STEP 6 is the vote on the bankruptcy plan. This was optional. If this step is not marked as complete, it does not affect the payout.
• STEP 7 is compliance with United States tax requirements. There is no withholding tax on these distributions. The amount you receive is net. You may still need to report it to your local authorities.
• STEP 8 is the choice of distribution provider. FTX does not send the money directly. Third-party services handle the withdrawals. These include Kraken, BitGo and Payoneer. You must choose one and complete a separate KYC process to withdraw the funds.
• STEP 9 shows the expected payout amount and the timeline for distribution.

There is also a parallel process. The Bahamas proceeding is administered by PwC.

Creditors were asked in 2024 to choose between the two systems. The Kroll process in the United States was the default. The payout amounts are the same. The recovery plan is the same. The payment providers are the same. The differences come from the practical experience of customers.

Many customers in the Bahamas have reported slow or nonexistent support responses. KYC checks have also been much slower. Almost one year after distributions began, many Bahamas customers remain stuck in the KYC review even after submitting the correct documents.

Other issues can delay payment. PAXTIBI LLP, one of the main funds helping creditors and providing liquidity for FTX claims, maintains a regularly updated FAQ. It is available at https://paxtibi.xyz/en/ultimate-ftx-faq.

The Case of Restricted Foreign Jurisdictions

If you thought the SBF drama and the FTX recovery process had already reached their limit, the summer of 2025 proved otherwise. The FTX Recovery Trust introduced a new shock that caught many creditors off guard.

In July, the Trust filed a proposal asking the court to withhold distributions from creditors in jurisdictions labeled as potentially restricted. These jurisdictions included China, Russia, Pakistan, Ukraine and Saudi Arabia. The move affected 5% of the estimated $16 billion in total claims. China represented 82% of that amount.

The Trust argued that the law in these countries makes it unclear or unlawful to send crypto-based payments to residents. Some of these places restrict crypto ownership. Others prohibit it entirely. The Trust said that sending compensation into these markets could violate local rules.

The motion caused immediate turmoil. Chinese creditors led the objections. After two hearings, Judge Owens ruled that their claims would not be forfeited. At the same time, the court said they would not be paid for now.

This result felt like a bittersweet win for the affected creditors. Their claims survived, which was important. But the timeline for repayment moved far into the future. The court said forfeiture should be used only as a last resort. It should happen only when every other option fails. There are still four to five years left in the bankruptcy process. Because of this timeline, the judge decided to place the restricted claims on hold. They will be reviewed near the end of the process or sooner if the regulatory landscape changes in those jurisdictions.

If you want to understand what options exist to cash out a claim today while living in a restricted jurisdiction, keep reading.

How To Get Early Liquidity For Your Claim

If you were an FTX customer, you are probably used to the fast rhythm of the crypto world. Prices move fast. Decisions flip overnight. Big institutions change their views without warning. JP Morgan now supports crypto, even though only a few years ago it called Bitcoin a Ponzi scheme. Changpeng Zhao was once treated as a public enemy in the United States. He has now been pardoned by Trump and is a strong supporter of World Liberty Finance.

Bankruptcy moves in a very different way. It is slow. It is procedural. It is the opposite of the energy and speed found in crypto.

So if your FTX payout is still pending, you are not alone. Sullivan and Cromwell, the legal team for the FTX Recovery Trust, estimates that more than 100,000 claims remain unprocessed.

There is some good news. Finance is about trading time and risk for value. Early liquidity is now possible. PAXTIBI LLP offers it. This is a distressed fund with deep experience in the FTX case. It has helped more than 1,000 creditors and has handled more than $50 million in claim value.

You may want early liquidity if any of the following apply to you:

• You are stuck in KYC and still waiting to be verified.
• You hold a claim larger than $50,000 and have already received 78% but do not want to wait four to five more years for the rest.
• You live in a restricted jurisdiction such as Russia, Ukraine, China, Saudi Arabia or any other country on the official list and do not want to wait until the end of the process to receive anything.
• You are an FTX equity holder.

PAXTIBI can help you unlock your claim and convert it into cash in less than 24 hours. The process is simple and fast.

It starts with a free quotation. After you accept the offer, the sale begins. You will be asked to provide documents for KYC and proof of ownership of the claim. This takes about 10 minutes.

Once this is done, the PAXTIBI legal team prepares a sale contract. It is sent to you through DocuSign. You also receive a $10 test transaction to your wallet. After you sign, the sale finalizes and the remaining funds are sent to you.

You can receive payment in stablecoins such as USDT or USDC. You can also choose crypto options such as BTC, ETH, XRP or SOL. You can also choose fiat through a bank transfer. If you use a bank transfer, normal banking times apply.

For people in restricted jurisdictions, this option is often the fastest and most practical way to receive a payout. It avoids long and expensive legal fights that could last for years. It also removes the risk of losing the entire value of the claim. This risk is real. It depends on the future legal environment in the country where the creditor lives. Judge Owen highlighted this risk during the court hearing.

If the only barrier to your payout is your location in a restricted jurisdiction, PAXTIBI also offers a payment processing solution.

This is a separate option. It is different from selling your claim. It is for creditors who are not seeking immediate liquidity. It fits people who are comfortable with the normal FTX payout timeline and do not want to lose any value through a sale.

In this scenario, the claim is transferred to PAXTIBI for processing. Once the distribution funds arrive, PAXTIBI sends you 90% of the payout. A flat 10% success fee is kept to cover legal and operational costs related to the transfer.