Three Years After FTX’s Collapse, Creditors Await Recovery
- FTX filed for bankruptcy on Nov. 11, resulting in over $20 billion withdrawn from centralized exchanges.
- The exchange has distributed $7.1 billion to creditors through three repayment rounds, with the next expected in January 2026.
- Bitcoin’s value increased from $16,797 at bankruptcy to approximately $103,000 recently, impacting creditor recovery rates.
- Only $454 million was paid to small claimants under $50,000 during the first repayment round.
- Transparency initiatives like proof-of-reserves have emerged across the industry but remain incomplete and criticized.
Despite efforts for greater transparency following FTX’s collapse, many creditors still face significant losses as repayments continue in US dollars rather than crypto assets. This situation has led to varied recovery rates estimated between 9% and 46% based on current market prices.
As of now, creditors have only received a fraction of their claims amid ongoing market fluctuations and regulatory changes in the cryptocurrency space.(Source)
