FTX Creditors Could Recover Only a Fraction of Losses in Real Terms

FTX creditors may receive far less value than expected once repayments are measured in today’s crypto prices rather than fiat terms, according to Sunil, a leading representative of the creditor community.

Sunil warned that while the collapsed exchange’s restructuring plan promises a 143% payout in U.S. dollars, the figure paints a misleading picture. Because Bitcoin, Ether,eum and Solana have all skyrocketed since FTX’s 2022 bankruptcy, the real crypto-equivalent recovery could range from only 9% to 46%.

Based on his calculations, Bitcoin creditors would recover just 22% of their holdings in real terms, Ethereum holders about 46%, and Solana investors a mere 12%. “FTX creditors are not whole,” he wrote, emphasizing that fiat-based repayments fail to account for lost exposure to crypto’s dramatic rebound.

Some creditors could see modest additional compensation through airdrops from outside projects aiming to engage the FTX community. Sunil mentioned Paradex as one such initiative targeting verified claimants.

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So far, two major payout rounds have been completed. The first, distributed in February, covered small claimants with under $50,000 in losses, while a second round in May released $5 billion to a broader set of creditors, including both U.S. and international customers. Remaining claim categories — such as unsecured and loan-based claims – are set to receive about 61% through custodians Kraken and BitGo.

Meanwhile, the FTX saga continues in court. Former CEO Sam Bankman-Fried, who was sentenced to 25 years for fraud and conspiracy, is scheduled to appear before the U.S. Court of Appeals on November 4 as he seeks to overturn his conviction.

For many creditors, though, the focus remains on what their eventual payout will truly mean – and how much of the crypto wealth lost in 2022 can ever realistically be recovered.