TechFlow news, according to revised bankruptcy filings recently shared by FTX creditor Sunil Kavuri, FTX creditors may recover only 10–25% of their cryptocurrency holdings. Kavuri explained that creditors will be compensated based on the cryptocurrency prices at the time of filing, which were significantly lower than current levels. For instance, at the time the legal petition was submitted, Bitcoin was priced at approximately $16,000.
Kavuri stated that many FTX customers have suffered mental distress, panic attacks, divorces, and even suicidal thoughts due to losing their life savings. Other creditors have similarly expressed outrage. Kavuri also pointed out that Sam Bankman-Fried violated both FTX's terms of service and broader definitions of property rights by using customer funds to repay outstanding debts.
On September 6, 2024, FTX’s bankruptcy team reached an agreement with Emergent Technologies, founded by Bankman-Fried, to obtain $600 million worth of Robinhood shares for distribution to creditors.
