Despite a 143% fiat repayment plan, soaring crypto prices mean actual recoveries for FTX creditors could drop to as low as 9%, exposing a deeper gap between perceived and real compensation.
FTX Recovery Rate Shrinks Amid Rising Bitcoin and Ether Prices
The long-awaited FTX repayment plan may not deliver the relief many creditors hoped for. According to Sunil, a leading representative for FTX creditors, the real recovery rate could be between 9% and 46%, depending on the cryptocurrency involved.
In a recent analysis shared publicly, Sunil explained that the exchange’s 143% fiat payout does not reflect the actual losses when measured in crypto-denominated terms. Since Bitcoin (BTC), Ether (ETH), and Solana (SOL) have surged dramatically since FTX’s 2022 collapse, the same dollar-based repayment now represents a much smaller share of the original holdings.
Inflated Market Prices Undermine the Repayment Value
Data shared by Sunil highlights the growing disparity between 2022 and 2025 prices. Bitcoin has climbed from $16,871 to over $110,000, Ether from $1,258 to $3,862, and Solana from $16 to nearly $185. When adjusted for these market shifts, the 143% fiat recovery equals roughly 22% for Bitcoin, 46% for Ether, and only 12% for Solana.
Financial analyst Rahul Menon noted that such discrepancies “underscore how volatile asset prices distort perceptions of recovery.” He added that creditors paid in fiat are effectively losing purchasing power in crypto terms, despite the apparent gains on paper.
Airdrops Offer a Ray of Hope
Sunil also mentioned possible “extra recovery channels” through airdrops from blockchain projects targeting FTX victims. These initiatives aim to reward verified creditors and could modestly improve overall returns.
FTX’s Recovery Trust has already begun distributing payouts — $1.2 billion in February for small claims and $5 billion in May for larger ones — while additional settlements are underway.
Ongoing Legal Battle of Sam Bankman-Fried
As repayments continue, Sam Bankman-Fried, FTX’s founder, is preparing for his appeal hearing on November 4. Legal experts say the outcome could influence future proceedings tied to crypto bankruptcy cases.
“This appeal won’t change the numbers, but it may reshape accountability standards across the crypto industry,” said blockchain lawyer Elena Strauss.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.