FTX is moving forward with customer repayments and legal settlements following its collapse in 2022, even as its native token, FTT, continues to struggle in the market.
With legal battles unresolved and trust eroded, the future of the FTX brand and the FTT token remain uncertain.
Legal Actions Continue
A month ago, former NBA star Shaquille O’Neal agreed to a $1.8 million settlement with FTX investors, according to documents filed in the U.S. District Court for the Southern District of Florida. The lawsuit, originally filed in May 2023, accused O’Neal of endorsing the now-defunct exchange in a 2022 television advertisement that allegedly misled retail investors.
Related: Shaquille O’Neal Agrees to a $1.8 Million Settlement in FTX Class-Action Lawsuit
This marks the first known celebrity settlement linked to FTX’s collapse. Other high-profile figures, including Tom Brady and Kevin O’Leary, were also sued but have not reached settlements. Some related claims were dismissed earlier this year by a Florida judge.
FTX has also contested a $1.53 billion claim from defunct hedge fund Three Arrows Capital. In a recent Delaware bankruptcy court filing, FTX labeled the claim as “baseless,” arguing that 3AC is trying to recover losses from failed leveraged bets during the crypto downturn.
According to FTX, 3AC’s actual account value was around $284 million, and it had withdrawn $60 million before the platform’s collapse.
Creditor Payouts and Recovery Plan
Despite ongoing litigation, the FTX Recovery Trust has launched a second wave of customer repayments, totaling over $5 billion. The payments are being processed through a partnership with Payoneer to reach global users.
Additionally, about $950 million in claims are still undergoing reconciliation. Of that, $660 million is flagged for potential litigation or incomplete Know Your Customer (KYC) procedures, including $290 million tied to Bahamian accounts. The Trust has revised its disputed claims reserve to $4.6 billion, down from an earlier $6.53 billion.
FTT Token Shows Weak Performance
FTT Token, the exchange’s native asset, is currently at $0.80 with a 24-hour gain of 0.32%. The token remains more than 99% below its all-time high of $85 and has lost over 78% of its value year-to-date.
At the same time, technical indicators remain negative. The one-day technical summary indicates 12 sell signals, 10 neutral signals, and only 3 buy signals. Most moving averages signal a continued bearish trend, including both short- and long-term metrics. The Relative Strength Index remains below 50, signaling continued market weakness.
Looking Ahead
Looking ahead, the FTX Recovery Trust is still working to finalize a disbursement process for restricted or sanctioned creditors, particularly those from jurisdictions such as China. Chinese claimants account for roughly 82% of the restricted claim pool, estimated at $380 million.
Related: Will FTX Claims Include Countries Where Cryptocurrency Activities Are Restricted or Banned?
While FTX is making progress on legal and financial fronts, investor confidence in its native token remains low. The future of FTT will likely depend on successful claim resolutions, clear regulatory direction, and whether the brand can rebuild trust in a skeptical crypto environment.
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