Understanding Your FTX Stub Claim: What It Means and How to Maximize Its Value

If you’re an FTX account holder, you have likely received an initial payout from the bankruptcy estate. For most claims greater than $50,000, that payout represents only a portion of your expected total recovery. Your entitlement to receive all future distributions, along with your other basic claim rights is commonly referred to as your stub claim. 

In FTX, future distributions will be based on litigation recoveries, liquidated crypto, the release of reserves no longer needed after the FTX Trust has disallowed claims or resolved disputed claims, and other contingent amounts.  

As the value of your stub claim falls with each successive distribution, the relative cost of managing your claim to ensure you receive future distributions increases. Selling your stub claim for cash today allows you to accelerate your recovery and eliminate risk. 

Although the estate has estimated that future distributions, together with your initial distribution, could exceed 145% of your claim amount (and the market expects that ultimate recoveries could reach as high as 175%) administrative cost overruns, negative litigation outcomes and other adverse events (such as data breaches and hacking) could deliver a worse outcome.

What are your options with your FTX Stub Claim?‍

If you’re holding an FTX stub claim, you have two main options:

‍1. Hold and Wait for Future Distributions

One option is to hold onto your stub claim and wait for the bankruptcy court to process additional distributions. While this may eventually result in full recovery, it comes with major risks:

• Delays – Bankruptcy cases can take years to finalize.
• Uncertainty – Future payouts are not guaranteed and depend on ongoing asset recovery efforts.
• Opportunity Cost – Keeping your stub claim means your capital is tied up instead of being used elsewhere.

2. Sell Your Stub Claim for Immediate Cash

Instead of waiting, you can sell your FTX stub claim through a claims trading marketplace like Xclaim. Selling your claim provides:

• Immediate liquidity – Get cash now instead of waiting.
• Certainty of value – Lock in a guaranteed amount instead of relying on speculative recovery estimates.
• Flexibility – Use the funds for other investments or financial priorities.

Selling Your FTX Stub Claim

Xclaim helps creditors maximize the value of their claims through a transparent, secure, and efficient process. 

What sets us apart?

• Largest marketplace – Your claim is listed for every institutional buyer to see and compete to deliver you the highest and best price. 
• Faster Transactions – Xclaim’s standard trading documents have been used in thousands of transactions and help save you valuable time (and money) when negotiating with buyers. `
• Risk-Free Process – Xclaim ensures safe transactions, eliminating the risk of dealing with unreliable buyers.

Maximize the Value of Your FTX Stub Claim Today

If you’re an FTX creditor with a stub claim, don’t leave your recovery to chance. Selling your claim through Xclaim’s claims marketplace gives you control over your financial future.

By understanding claims trading, you can make informed decisions about when and how to sell your claim, ensuring you get the best possible outcome instead of waiting indefinitely for the bankruptcy process to unfold.

Xclaim can help

Billions of dollars of claims are created in reorganizations every year. The process is often opaque and confusing to creditors who may have only one bankruptcy claim over their entire business career. Retaining a professional or attorney to manage a claim is often a disproportionate cost for creditors. It also increases short term cash outflows. Selling a claim provides a cash inflow, which derisk a situation which is not a core business risk. Using a marketplace like X-claim helps bring more buyers to your claim and improves the offer for your claim. Visit https://www.x-claim.com to register to sell your claim today.