Last week, SpaceX went public with an initial valuation of $1.77 trillion, before going well beyond it. This event revives the hopes of the creditors of FTX, the crypto exchange founded by Sam Bankman-Fried, who held an indirect stake in Elon Musk's company before its bankruptcy in 2022. Could Bankman-Fried's victims ultimately recover much more than expected?
In brief
- FTX held exposure to SpaceX through venture capital firm K5 Global, with which the estate entered into an agreement in January 2025.
- According to projections from creditors' attorney Kyle Schmidt, final distributions could reach 171% of claims over $50,000.
- The FTX estate has already distributed $10.3 billion to its customers, and SpaceX's IPO could further inflate that figure.
SpaceX on the stock market, an unexpected asset in the FTX portfolio
FTX was not just a crypto platform. Before its bankruptcy in November 2022, the exchange had invested in several companies via third-party venture capital companies. Among them, K5 Global held positions in SpaceX, which indirectly exposed FTX to the valuation of Elon Musk's rocket maker.
In January 2025, John J. Ray III, CEO of the bankrupt FTX estate, reached an agreement with K5 Global to end a lawsuit filed in June 2023. Both parties have since agreed to work together to maximize recoveries. K5 Global still includes SpaceX in its active portfolio.
It is clear that K5 represents a major asset to FTX's portfolio. The excellent performance expected from their investments will be a key factor in recovery efforts.
John J. Ray III, CEO of FTX Estate
What can creditors expect after SpaceX's IPO?
The projections are already circulating among creditor defenders. Kyle Schmidt, known as “Mr. Purple,” anticipates final distributions of 171% of claims for clients whose claims exceed $50,000. This figure includes liquidation surpluses and interest accrued since the bankruptcy.
Sunil Kavuri, a British investor who lost around $2 million in the FTX collapse and became a spokesperson for victims, told Decrypt that “it's always great news to see good investments that could help with recovery and repayment of creditors.” SpaceX's market capitalization could cross $2.5 trillion according to some estimates.
Furthermore, the SBF affair is experiencing new twists and turns. His appeal was rejected and a request for a presidential pardon was filed with the US Department of Justice, with no result at this stage. Senators Cynthia Lummis and Rubén Gallego also tabled a joint resolution on June 17, 2026 to formally oppose it.
The FTX bankruptcy, long synonymous with financial disaster for its $10.3 billion in losses, is now taking an unexpected turn. SpaceX's IPO, combined with the agreement signed with K5 Global and accrued interest, creates a convergence of catalysts favorable to creditors.
It remains to be seen whether the stock market valuation will keep its promises. For the victims of Bankman-Fried, this is perhaps the first real good news since November 2022. Monitoring the evolution of the FTX case therefore remains essential in the weeks to come.
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