FTX Repayments: A Landmark Victory for Crypto Creditors

Key Points

1. FTX, once a major crypto exchange, collapsed in November 2022, leading to complex bankruptcy proceedings under Chapter 11 in the U.S.

2. Creditors are now receiving repayments, with smaller claims seeing a 120% return due to the increased value of held assets, particularly Solana (SOL).

3. The FTX Debtors have outlined a multi-round distribution plan, with additional payouts expected between 2026 and 2027.

4. The FTX case sets a precedent for potential asset recovery in crypto bankruptcies, contrasting with near-total losses in past collapses.

5. Despite the progress, some creditors dispute the valuation methods, arguing assets should be valued at current market rates.