Sunil, a prominent FTX creditor representative, said FTX creditors could receive far less than originally thought if payments are adjusted to match today's inflated crypto valuations.
In a Sunday post to
“FTX’s creditors are not all,” he wrote, adding that the exchange’s planned 143% repayment of fiat currencies does not reflect losses denominated in cryptocurrencies.
According to a table shared in his post, Bitcoin's petition price was $16,871, compared to the current price of more than $110,000. This means that a fiat payment of 143% equates to approximately 22% in real BTC value. Similarly, Ether's 143% recovery rate is effectively equivalent to 46%, while Solana's recovery rate is only 12%.
FTX creditors share the effective recovery rate. sauce: sunil
Related: Former FTX US head bets on traditional market “culprits''
FTX creditors could earn more through airdrops
Sunil also pointed to the possibility of “additional recoveries” through airdrops from external projects targeting FTX creditors. He cited Paradex as one such initiative, noting that “FTX creditors are the most valuable asset and attractive to the project.”
The first round of FTX creditor payments to recipients with claims of less than $50,000 was distributed on February 18, totaling $1.2 billion.
In May, the FTX Recovery Trust began making a second $5 billion payment to eligible creditors. The payments covered multiple claim categories, including dotcom customer rights claims (72%), US customer rights claims (54%), and convenience claims (120%).
Meanwhile, general unsecured and digital asset loan claims are scheduled to receive a 61% distribution, with funds expected to reach recipients within 1-2 business days via Kraken and BitGo.
Related: Polymarket expects Sam Bankman Freed pardons to jump to 12%
Sam Bankman Freed's appeal hearing scheduled for November 4th
Former FTX CEO Sam Bankman Fried, currently serving a 25-year sentence for fraud and conspiracy, is scheduled to appear before the U.S. Court of Appeals for the Second Circuit on November 4, the next step in efforts to overturn his conviction.
Bankman Freed's lawyers filed an appeal in September 2024, arguing that he was “never presumed to be innocent” and that prosecutors had misrepresented his handling of FTX customer funds. The appeal challenges his 2023 conviction on seven felonies.
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