FTX creditors may only recover 10-25% of the cryptocurrency

According to the latest revised bankruptcy document shared by FTX creditor Sunil Kavuri, FTX creditors may only be able to recover 10-25% of their cryptocurrency. Kavuri explained that creditors will be compensated according to the price of the cryptocurrency on the date of application, which was far lower than today. For example, when the legal application was submitted, the price of Bitcoin was about $16,000. Kavuri stated that many FTX customers suffered from mental distress, panic attacks, divorces and even suicidal thoughts due to their life savings being stolen. Other creditors also expressed similar anger. Kavuri also pointed out that Sam Bankman-Fried violated FTX's terms of service and broader property rights definitions by using customer funds to repay unpaid debts. On September 6th 2024, The FTX bankruptcy management team reached an agreement with Emergent Technologies founded by Bankman-Fried for $600 million in Robinhood shares for debt repayment.