FTX Expunged Claim. It's Not Over.

What "Expunged" Actually Means

In the FTX cases, an expungement is an outcome tied to a specific objection, schedule and court order. The order can disallow a proof of claim, a scheduled customer entitlement, or both. The word alone is not a diagnosis.

FTX omnibus objections have addressed different issues, including duplicate or superseded entries, asserted liability or balance problems, late-filed claims, claims against the wrong debtor, and failure to complete a stated KYC process. The controlling ground is the one stated in the documents that identify your claim.

Before drawing a conclusion, identify:

• the objection docket number and the ground asserted by the Trust;
• the exact customer code, schedule number or proof-of-claim number listed;
• the entered order, rather than only a proposed order or portal label; and
• the final exhibit showing whether the entry was expunged, removed, adjourned or otherwise resolved.

A Documented FTX Example: 6,846 Expunged and 264 Removed

The final exhibits can matter as much as the original schedule. In May 2026, the court entered D.I. 35557 concerning unverified customer entitlement claims. The order set a June 30 KYC submission deadline for the claims on its schedule.

On July 31, 2026, the Trust filed D.I. 36065. Its Exhibit A lists 6,846 claims as expunged; Exhibit B lists 264 claims removed from that outcome. Together, the exhibits account for all 7,110 entries in that process.

Documents to Review Before Considering a Motion

Build the document chain before choosing a remedy. A useful review packet includes:

• the filed objection and every schedule revision that may contain the claim;
• the notice and proof of service, including the address or email used;
• any response, declaration, supporting account records or adjournment notice;
• the signed, entered order and the final expunged or removed exhibit; and
• any later stipulation, withdrawal, notice, amended schedule or court order.

Account screenshots and transaction records may support the underlying balance, but they do not replace the procedural documents. The question is not only whether a balance existed; it is also which claim entry the order affected and why.

How Rules 3008, 9024 and 60 Fit Together

Bankruptcy Rule 3008 allows a party in interest to move for reconsideration of an order allowing or disallowing a claim. Section 502(j) says a claim may be reconsidered for cause and then allowed or disallowed according to the equities of the case.

Bankruptcy Rule 9024 generally applies Civil Rule 60 in bankruptcy. Rule 60(b) lists grounds such as mistake or excusable neglect, newly discovered evidence, fraud or misconduct, a void or satisfied order, and other reasons that justify relief. A claimant must connect the evidence to an available ground; disagreement with the result by itself is not enough.

Timing is fact-specific. Rule 60 ordinarily requires a motion within a reasonable time and applies a one-year cap to grounds (1) through (3). Rule 9024 removes that one-year cap for a motion to reconsider an uncontested order allowing or disallowing a claim. That exception does not guarantee relief and does not make delay irrelevant.

What Can Be Said About Cost, Timing and Outcome?

No public rule sets a standard fee, duration or success rate for an FTX reconsideration request. A quoted range without the objection and order can create false precision.

Can an Expunged FTX Claim Be Sold?

An expunged position can be submitted to a buyer for review, but a signed assignment does not make a disallowed claim allowed. The buyer must assess what rights remain, whether relief is realistically available, and who bears the cost and risk of pursuing it.

There is no universal percentage for an expunged claim. Any offer depends on the objection ground, final order, evidence, timing, claim amount, prior distributions and the buyer's view of the recovery path. Some files may not support an offer at all. If an offer is made, the contract should state the rights assigned, the settlement trigger and what happens if the court or Trust rejects the asserted position.

Disputed Claims: A Related Category

"Disputed" and "Expunged" should not be treated as interchangeable. A disputed label can reflect an unresolved objection, but it can also lag behind later events. Trace the disputed status through the relevant objection and later filings before assuming either that a response deadline remains open or that the claim has been lost.

FAQ