FTX Token FTT

What the record shows

The founder and chief executive of FTX was indicted in New York, and the charges were unsealed on December 13, 2022 [1]. A jury found him guilty on seven counts on November 2, 2023, and the court entered its judgment on April 1, 2024 [2]. He had been sentenced on March 28, 2024 to 25 years in prison [3].

The Second Circuit affirmed the judgment on June 12, 2026 and issued its mandate on August 4, 2026 [4] [5]. His petition asking the Supreme Court to hear the case was docketed on September 15, 2026. The government’s response is due on October 15, 2026 [6].

The earliest judgments in this record are older than the verdict. On December 23, 2022 the court entered judgments against the former chief executive of Alameda Research and FTX’s former chief technology officer in the SEC’s case [7] [9]. The same day it entered consent orders on liability against both in the CFTC’s case [8]. Both had agreed to settle with the SEC, according to its release [9].

The SEC said in December 2025 that the two had consented to final judgments without denying its allegations [10]. The court signed those final judgments on December 23, 2025 [7]. Conflict ledger rows 25 and 26 record how the consents are worded and the three dates attached to the founder’s judgment.

FTT was FTX’s exchange token, used to get discounted trading fees, according to the findings in the CFTC’s consent order against FTX Trading Ltd. and Alameda Research LLC [11]. The court signed that order on August 7, 2024 [8]. The findings say Alameda held a significant share of all FTT in circulation and relied on FTT and similar tokens as collateral for large loans. The FTX companies agreed to the findings, and the order says they do not bind any other party to the case [11].

The SEC’s complaint against the two alleges more. It says Alameda’s chief executive, at the founder’s direction, bought FTT in large amounts to prop up its price, which inflated the value of Alameda’s collateral [9]. That is an allegation, not a finding.

The SEC’s own case against the founder, brought on December 13, 2022, alleged that he hid from FTX’s investors the risk of Alameda’s holdings of illiquid assets such as FTX-affiliated tokens [12]. The court stayed that case on February 13, 2023, and it stayed the CFTC’s case against him the same day [13] [8]. The SEC case’s docket entries after that day are not checked here.

What the chain shows

FTT is an ERC-20 token on Ethereum. Etherscan lists the contract as FTX Token (FTT) with 18 decimals, and the page still shows transfers and a market price [14]. So the token still trades, and this page names no venue and prints no price. The explorer page carries no migration notice, so no swap is claimed here.

Claims and distributions

FTX Trading Ltd. and 101 affiliated debtors filed for chapter 11 in Delaware on November 11 and November 14, 2022, in cases jointly administered under Case No. 22-11068 [15]. The customer bar date was September 29, 2023, and an amended bar date for certain customers was February 26, 2024. The court confirmed the plan on October 8, 2024, and it took effect on January 3, 2025 [15].

On February 7, 2024 the court granted the debtors’ motion to value claims based on digital assets for voting and distribution, using a table attached to its order [16]. The table values FTT at zero, in a group it shares with FTX equity claims [17]. The order says it does not decide how a plan classifies FTT [16]. How the confirmed plan treats FTT beyond that table is not checked here, because the plan text was not captured.

Tax treatment

The verdict does not create a loss. A loss needs a closed transaction. The IRS Chief Counsel memo on crypto that has crashed says a token that still trades on an exchange is not worthless, and a holder who still controls it has not abandoned it [18]. The memo reads a worthlessness loss for an individual as a miscellaneous itemized deduction, and the statute now allows none of those for any tax year after 2017, with no end date [19].

A sale is different. The IRS FAQ says a sale of virtual currency for real currency is a capital gain or loss, reported on Form 8949 and summarized on Schedule D [20]. How a payment on an FTX claim is taxed is a question this page has not checked against a primary source. FTX account records, the debtors’ own tax FAQ, and rebuilding basis are the subject of the FTX cost-basis guide.

What a holder can do

The recover-or-write-off table further down lists three things a holder can do with what is left. None of them is a recommendation. Each one produces a different receipt, and the IRS reads the receipt.