FTX Creditors May Recover Only 9–46% in Real Crypto Terms Despite 143% Payout Promise
FTX creditors could recover as little as 9% to 46% of their holdings in real crypto value, according to Sunil, a prominent creditor representative. Despite public claims that the payout may reach 143%, high market prices for assets like Bitcoin and Ethereum have significantly reduced the actual recovery value in crypto terms.
Nominal vs. Real Recovery
Sunil noted that the official payout plan is based on U.S. dollar valuations from the bankruptcy filing date in November 2022, when crypto prices were much lower. As a result, even a nominal return of 143% would not compensate creditors for the actual amount of cryptocurrency they lost.
In essence, while the recovery may look impressive on paper, the real crypto-equivalent return remains drastically below what creditors originally deposited.
Airdrops Offer Limited Relief
Some additional recovery may come from airdrops distributed by external crypto projects to FTX creditors. The decentralized trading protocol Paradex has already issued such an airdrop, with more projects expected to follow.
While these gestures provide some relief, they remain small compared to the billions in digital assets lost during FTX’s collapse.
A Lingering Wound in Crypto History
The FTX bankruptcy remains one of the most complex and consequential in the cryptocurrency industry. For many creditors, the eventual payout—whether in cash or tokens—falls far short of the value they once held, underscoring the broader challenges of valuing digital assets within traditional bankruptcy frameworks.
