Core Insights - FTX's bankruptcy estate is set for its final major distribution phase in March 2026, concluding a recovery process that began after the exchange's collapse in November 2022 [1] - Significant asset recoveries and reduced disputed reserves may lead to substantial benefits for ETH holders [1] Distribution Details - The final distribution phase targets larger claims of $50,000 or more, with approximately $1.7 billion expected to be disbursed as part of a broader $9.6 billion settlement framework [2] - The Delaware Bankruptcy Court approved a reserve reduction, which has increased projected recovery rates to potentially reach 155% to 160% in some cases [2][4] Creditor Obligations - A creditor representative indicated that this distribution phase addresses the majority of remaining customer obligations, including some non-customer claims, although procedural requirements such as KYC verification must be completed [3] - Regulatory restrictions in 49 jurisdictions, including China, may limit participation for some claimants [4] Valuation and Recovery Rates - At the time of FTX's bankruptcy filing on November 11, 2022, Ethereum was valued at approximately $1,287, and creditor claims were calculated based on this asset price [5][6] - Projected recoveries for creditors could range from 119% to as high as 160% of petition-date claim values, with ETH holders potentially receiving cash payouts equivalent to roughly $2,000 per ETH [6] Financial Allocations - A total of $7.8 billion is allocated for large claims, while $780 million is designated for smaller claims [7] - The disputed claims reserve has been reduced from $4.6 billion to $2.4 billion, freeing up additional liquidity for distributions [7]

On Oct. 14, the Blockchain Recovery Investment Consortium (BRIC), a joint venture between GXD Labs and VanEck, announced a $299.5 million settlement with Tether in connection with the Celsius Network bankruptcy case. The lawsuit, filed in the US Bankruptcy Court for the Southern District of New York, stemmed from collateral transfers and liquidations made before Celsius’s July 2022 collapse. Following months of litigation, GXD Labs, an affiliate of Atlas Grove Partners, and VanEck, which manages approxima ...