FTX Creditors Recover 9–46% in Crypto as New Exchanges Push Leverage Caps

FTX Creditors Grapple With Crypto Value Shortfalls as New Exchanges Promote Responsible Trading

FTX creditors are confronting a stark reality: despite a nominal 143% fiat repayment from the exchange's bankruptcy proceedings, their real recovery in cryptocurrency terms ranges from 9% to 46%, according to Sunil Kavuri. This discrepancy arises from the meteoric rise in crypto prices since FTX's collapse in November 2022. For example, Bitcoin's value has surged from $16,871 at the time of filing to over $110,000 today, meaning a 143% fiat payout equates to just 22% in Bitcoin terms. Solana holders face an even steeper loss, recovering only 12% of their holdings in real terms.

The FTX Recovery Trust has distributed $7 billion in total repayments, including a $5 billion payout in May 2025 covering multiple claim categories. However, critics argue that courts' reliance on 2022 prices—when crypto was in a bear market—understates creditors' actual losses. "FTX creditors are not whole," Kavuri stated on X, emphasizing that many claims remain unresolved while scam artists exploit the situation with fake airdrops.

Meanwhile, the crypto industry is recalibrating its approach to leverage trading, a practice blamed for exacerbating FTX's downfall. Brett Harrison, formerly of FTX US, has launched Architect, a perpetual futures exchange focused on traditional assets like stocks and forex, avoiding volatile crypto markets. Harrison, who previously oversaw FTX US's derivatives business, now advocates for responsible leverage, capping borrowing at 25X for stable pairs like EUR/USD and 8X for volatile equities like Tesla. His stance contrasts sharply with the crypto derivatives sector, where platforms like Hyperliquid and Aster offer up to 1,000X leverage with minimal safeguards.

Harrison's critique aligns with broader concerns about the risks of high-leverage trading. The October 2024 flash crash, which erased $19 billion from derivatives markets, underscored the fragility of systems built on excessive leverage. "Derivatives exchanges should enable hedging, not gambling," Harrison told Decrypt, warning that platforms prioritizing liquidation fees over user protection risk repeating FTX's collapse.

While FTX's legal battles continue—founder Sam Bankman-Fried faces an appeal of his 25-year fraud conviction—creditors remain focused on maximizing their recoveries. Some hope for relief from airdrops by crypto projects targeting FTX claimants, though such initiatives remain speculative. For now, the FTX saga serves as a cautionary tale of how market timing and valuation methods can distort perceptions of financial recovery in the volatile crypto landscape.