FTX Bankruptcy Filing Reveals $1.4 Billion in Cash: What Happens Next?

Recent reports highlight a surprising detail from the FTX bankruptcy proceedings: the collapsed crypto exchange FTX has issued bankruptcy filings that show the company held $1.4 billion in cash to conclude 2025, according to Bloomberg. This discovery raises important questions about the future of creditor repayments and the ongoing legal battles.

The bankrupt FTX group of crypto companies held $1.43 billion in cash at the end of last year and saw headcount drop almost 40%, according to an interim financial update. This update provides crucial insights into the assets available for distribution to creditors. Further details reveal that U.S.-based affiliates of FTX, including the FTX US exchange, had US$261 million in cash at the end of 2025, according to the court document. This distinction between FTX's overall cash holdings and the U.S. affiliate's assets is vital for understanding the recovery process for different investor groups.

How will this cash be distributed? While customers won’t receive their original crypto holdings, they will be reimbursed in cash based on asset values as of November 2025, the month FTX filed for bankruptcy protection. This means the amount creditors receive will be tied to the valuation of their crypto assets at the time of the bankruptcy filing, not current market prices. This process is complex and subject to court approval, but the $1.4 billion in cash represents a significant pool of funds available for distribution.

The role of FTX founder and former CEO, Sam Bankman-Fried, continues to be a focal point of the investigation and legal proceedings. His actions leading up to the bankruptcy are under scrutiny, and the outcome of these proceedings will likely influence the recovery timeline and the ultimate amount creditors receive.

Stay updated on the latest developments in the FTX bankruptcy case as we continue to report on the progress of asset recovery and the distribution of funds to creditors.