FTX creditors may receive less than initially believed when payouts are adjusted for today’s inflated crypto valuations, according to Sunil, a prominent FTX creditor representative.
On a Sunday Post At X, Sunil estimated that the true crypto recovery rate for FTX creditors ranges between 9% and 46%, noting that the actual amount could be as low as Bitcoin (BTC), Ether (Eth) and Solana (Sol) prices have strengthened since the exchange crashed in 2022.
“FTX’s creditors are not whole,” he wrote, adding that Fiat’s planned 143% payment does not reflect losses in crypto-defined terms.
According to a table shared in his post, the petition price of Bitcoin is $ 16,871 compared to more than $ 110,000 currently, which means that a 143% fiat payout is equivalent to about 22% in the real value of BTC. Similarly, Ether’s 143% recovery equates to 46% in real terms, while Solana’s value is only 12%.
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FTX creditors can earn more through airdrops
Sunil also pointed to the possibility of “excess recovery” through airdrops from external projects targeting FTX’s creditors. He mentioned Paradex as one such initiative, noting that “FTX creditors are the most important asset and attractive for projects.”
The First round of FTX Creditor payments For recipients with less than $50,000 in claims distributed on Feb. 18 and reached $ 1.2 billion.
In May, the FTX Recovery Trust Launched the second $ 5 billion payout to eligible creditors. The payment covers many claim categories, including dotcom customer entitlement claims (72%), US Customer Entitlement Claims (54%) and convenience claims (120%).
Meanwhile, general unsecured and digital loan claims are set to receive a 61% distribution, with funds expected to reach recipients via Kraken and Bitgo within one to two business days.
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Sam Bankman-Fried’s appeal hearing set for November 4
Former FTX CEO Sam Bankman-Fried, who is currently serving a 25-year prison term for fraud and conspiracy, is set to appear before The US Court of Appeals for the Second Circuit on November 4, marking the next stage in his effort to overturn his conviction.
The Bankman-Fried legal team the appeal was filed in September 2024arguing that he was “never presumed innocent” and the prosecutors the handle is incorrectly declared of FTX customer funds. Appellant challenges his 2023 conviction on seven felony counts.
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