Understanding the Recovery Prospects
The recovery prospects for creditors of the collapsed crypto exchange FTX have taken a grim turn. Despite the bankruptcy estate having billions in assets, updated reports suggest that creditors may recover as little as 9% of their claims when adjusted to current cryptocurrency prices.
This sharp drop in potential recovery stems from a crucial detail in the bankruptcy process: all customer claims are valued based on crypto prices from November 2022, the time when FTX filed for bankruptcy. At that time, Bitcoin was hovering around $16,000 — far below its current price in late 2025.
How 2022 Valuations Impact Payouts
Many FTX users held assets like Bitcoin, Ethereum, and Solana on the platform. But because the claims are calculated based on 2022 fiat values — not the number of coins held — any appreciation in crypto prices since then doesn’t benefit the creditors.
For instance, if a user held 1 BTC on FTX, they are now entitled to around $16,000 (the 2022 price), not the current value of Bitcoin, which is over $34,000. That means even if the bankruptcy estate distributes close to 100% of the dollar value claimed, in today’s market terms, creditors are only getting back around 9% of the actual value of their original crypto holdings.
NOW: FTX creditors may recover as little as 9% once adjusted for current crypto prices. pic.twitter.com/leOY6lOsCE
— Cointelegraph (@Cointelegraph) November 2, 2025
Growing Frustration Amidst Legal Developments
This situation has sparked widespread frustration among FTX users and the broader crypto community. Many feel cheated, especially as the bankruptcy estate is now holding significantly appreciated assets. Legal experts note that bankruptcy law typically values claims at the time of filing, but the crypto community argues this outdated approach fails in the face of such a volatile market.
The situation continues to develop as the FTX estate navigates asset recovery and legal proceedings. Meanwhile, users wait, hoping for a fairer resolution — though prospects remain dim under current conditions.