FTX's Two-Year Repayment: A 'Win' for Creditors

FTX's 2-year repayment delay is a 'win,' claims trader who predicted FTX's collapse

A crypto trader and marketing executive, Ishan Bhaidani, who accurately predicted FTX's collapse, has expressed that the repayment of FTX creditors after two years is a "win" considering the circumstances. In an interview with Cointelegraph at ETHDenver, Bhaidani, a founder of crypto marketing firm SCRIB3, stated that he initially thought the process would take longer due to the complex jurisdictional issues and the multinational nature of FTX.

The collapse of FTX, one of the largest financial frauds in US history, occurred when the company illegally used customer funds to invest in its sister trading firm, Alameda Research. This led to a liquidity crisis, preventing customers from withdrawing their funds, and ultimately resulted in FTX filing for Chapter 11 bankruptcy on November 11, 2022.

FTX began its first round of reimbursements on February 18, 2025, with the next round scheduled for May 30. Creditors eligible for the second round must verify their claims by April 11. Under FTX's recovery plan, 98% of creditors are expected to receive at least 118% of their claim value in cash.

Bhaidani, who published a 20-part X post on October 5, 2022, predicting the shady dealings at FTX, noted that it would be interesting to see whether those who bought claims from FTX creditors would ultimately benefit. He pointed out that the value of these claims would depend on the cryptocurrencies they were used to purchase, with Bitcoin, Ethereum, and Solana being the most notable examples.

Bhaidani is well-known for identifying flaws in FTX's business model and predicting its collapse a month before it happened. In the interview, he highlighted the collateral damage FTX suffered from the $60 billion Terra Luna ecosystem collapse and the departure of former FTX US President Brett Harrison before he could receive his full payout.

When asked about the possibility of former FTX CEO Sam Bankman-Fried receiving a pardon for his 25-year prison sentence, Bhaidani estimated the chances to be between 2% and 5