**FTX Creditors’ Promised 143% Recovery Falls Short Amid High Crypto Prices**
Creditors of the defunct FTX exchange are now facing a significant shortfall, despite earlier promises of a nominal payout amounting to 143%. According to FTX creditor representative Sunil, the real recovery rate in cryptocurrency terms is actually much lower—ranging between 9% and 46%. This means that creditors have yet to be fully reimbursed in terms of the crypto assets they originally held.
### Real Recovery Rate Significantly Lower Than Nominal Payout
The initially promised 143% payout was based on asset valuations reported at the time FTX filed for bankruptcy. However, since then, cryptocurrency prices have surged considerably. This increase has eroded the purchasing power of the fiat-based payouts, as the same amount of money now buys fewer tokens than before.
This disparity between nominal and real recovery rates explains the shortfall creditors face today.
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### Background: The Payout Process So Far
The FTX Recovery Trust began its second major payout phase in May, distributing approximately $5 billion to eligible creditors. This distribution covered multiple claim categories, including:
– **Dotcom Customer Entitlement Claims:** 72% payout
– **US Customer Entitlement Claims:** 54% payout
– **Convenience Claims:** Highest payout at 120%
The first round of payments was made earlier, on February 18, targeting creditors with smaller claims (aggregate claims under $50,000). That initial distribution totaled $1.2 billion.
In total, the recovery process has already returned billions of dollars to affected parties.
Further payouts are expected soon for groups such as General Unsecured and Digital Asset Loan Claims, who are slated to receive about 61% of their claims. To facilitate efficient delivery, distributions will be handled through trusted platforms like Kraken and BitGo.
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### Why Fiat Payouts Don’t Fully Compensate Creditors
Despite the sizeable fiat payouts, the recovery is not a full replacement of the crypto assets creditors originally possessed. Because the recoveries are denominated in fiat currencies and not in the original cryptocurrencies, current market price increases mean creditors receive less value in real crypto terms.
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### Airdrops Offer Creditors a Path to “Extra Recovery”
Looking ahead, creditors may have an opportunity to improve their recovery through airdrops from external projects. These airdrops are distributed directly to FTX creditors, entirely outside the bankruptcy proceedings.
Sunil highlighted this “extra recovery” potential by citing Paradex as an example of a project that has already airdropped tokens to creditors. He also mentioned that more projects are likely to follow soon.
These external initiatives are particularly valuable because FTX creditors represent a highly attractive community for new token launches. Projects use airdrops targeted at these creditors to gain initial traction and market interest.
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### Dual Recovery Model: Base Payout Plus Upside Potential
This dual recovery approach offers some relief to creditors:
– The nominal fiat payout guarantees a baseline return.
– External airdrops provide an opportunity for upside potential.
Nevertheless, the stark reality remains that the actual crypto recovery rate is far below the nominal value, ranging only between 9% and 46%.
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### Conclusion
While billions have been returned to FTX creditors through fiat payouts, the surge in cryptocurrency prices means that these recoveries translate to significantly less value in real crypto terms. External airdrops offer a promising avenue for additional compensation, but the gap between nominal payouts and actual recovery underscores the challenges creditors continue to face in reclaiming their assets.
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*Related Reading: [Crypto News Today: SBF Team Insists FTX Never Went Bankrupt as Creditors Paid in Full | Live Bitcoin News]*
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