FTX Creditors Unable to Benefit from Cryptocurrency Gains, Estimated Real Recovery Rate Between 9% and 46%

Sunil Kavuri, a representative of the creditor group for the bankrupt cryptocurrency exchange FTX, estimated on the 2nd that the assets recoverable by FTX creditors are realistically between 9% and 46%. In USD terms, FTX claims to repay 143% of the original assets. However, cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) have significantly increased in value since the FTX bankruptcy, and creditors will not benefit from these gains. This is because FTX is compensating its former customers not with the actual cryptocurrencies but in the 'cash equivalent value' as of November 2022, when the bankruptcy was filed. Mr. Kavuri has criticized this approach from the beginning...