When FTX imploded in 2022, few imagined that Bitcoin would one day trade above $110,000 or that Ethereum would climb past $3,800.
Yet that is the backdrop against which creditors of the failed exchange are finally being repaid – and it’s turning what looked like a victory into a disappointment.
The Illusion of Being “Made Whole”
In court filings and press releases, the FTX bankruptcy estate has pointed to a roughly 143% fiat recovery rate, a number that sounds generous at first glance. But in the world of crypto, where value is denominated in tokens rather than dollars, that calculation misses the bigger picture.
Sunil, one of the most active representatives of FTX creditors on social media, recently recalculated what the payouts actually mean. His figures tell a very different story: once the surge in Bitcoin, Ether, and Solana prices is factored in, the “real” recovery shrinks dramatically.
At Bitcoin’s petition price of about $16,871, today’s 143% repayment equals only 22% of what those coins would now be worth. Ethereum fares slightly better at 46%, while Solana holders recover a mere 12% in relative value. “FTX creditors are not whole,” Sunil said flatly – and the numbers back him up.
FTX Bankruptcy recovery rates in real crypto terms
FTX creditors are not whole
9% to 46%: Real crypto terms recovery but probably in reality lower as crypto prices higher when 143% paid
Also seen on CT some:
1) Protect known scammers/liars/fraudsters
2) Attack those helping… pic.twitter.com/pUcjIPFsnv— Sunil (FTX Creditor Champion) (@sunil_trades) November 2, 2025
Why Crypto Denominations Matter
For traditional investors, being repaid in dollars makes sense. But FTX’s customers weren’t holding cash; they were holding digital assets. Measuring their recovery in fiat terms is like compensating a stolen gold bar with a check for its 2022 melt price. The currency has changed, but so has the market.
That mismatch exposes one of the bankruptcy’s quirks: even though the exchange operated in crypto, U.S. bankruptcy law recognizes claims in dollars. By the time repayments are processed, years of price appreciation have eroded their real crypto value.
Small Wins and Side Doors
Not all is lost, though. A few blockchain projects have begun targeting FTX creditors with airdrop incentives as a form of outreach and marketing. Paradex, among others, has hinted at distributing free tokens to those on the creditor lists, framing them as “high-value early adopters.” These gestures won’t close the gap, but they do add a new twist to one of crypto’s largest bankruptcies.
Meanwhile, the FTX Recovery Trust has been releasing funds in phases. Early in 2025, it sent $1.2 billion to smaller claimants and followed up with a $5 billion payout to larger groups. Distribution rates vary: Dotcom customers received 72%, U.S. customers 54%, and so-called Convenience Claims 120%. General Unsecured and Digital Asset Loan Claims are still in line for 61% distributions through custodians like Kraken and BitGo.
The Ghost of Sam Bankman-Fried
Hovering over the entire process is the case’s most infamous figure: Sam Bankman-Fried. Now serving a 25-year sentence, he is scheduled to appear before the U.S. Court of Appeals on November 4, attempting to overturn his conviction. His lawyers claim that the trial misrepresented how FTX handled customer funds – a defense that creditors view with skepticism, if not outright anger.
A Recovery Overshadowed by the Market
In raw numbers, the FTX estate has done something remarkable – locating and returning tens of billions of dollars. Yet in emotional and financial terms, it feels like a hollow triumph. The world FTX left behind has changed completely. Bitcoin’s meteoric rise means that a dollar-denominated payout can no longer bridge the loss.
Creditors are getting checks while the rest of the crypto market celebrates new highs. The paradox, as Sunil pointed out, is cruel: the better the market does, the smaller their recovery feels. For them, the bull run is not a comeback – it’s a reminder of everything they no longer hold.
