FTX Settlements Show a Clear Trend: Taking Cash Wasn’t That Bad

Key Takeaways

• More than two years after its collapse, FTX has begun repaying creditors.
• Small creditors are receiving around 118% of their claimed value, including interest.
• Some FTX customers are frustrated that assets are being converted into cash at 2022 prices rather than current market values.

More than two years after FTX’s dramatic downfall, the bankrupt exchange has started paying back its creditors.

The long-awaited process kicked off in mid-February 2025, offering long-stranded customers their first real compensation since the platform’s implosion.

For some, the repayments have been unexpectedly favorable. Small creditors—those with claims under $50,000—are receiving 118% of their original claims, including interest.

That means some early claimants are walking away with more than they initially had. But not everyone is celebrating.

The repayments are being made in cash, and crucially, FTX is valuing crypto holdings at their 2022 collapse prices rather than their current market rates.

While some creditors are making money on the settlement, others—especially those who held appreciating assets like Bitcoin (BTC) and Ethereum (ETH) —are missing out on massive gains.

Creditors Get Paid, but Some Feel Cheated

FTX’s reorganization plan, approved in October 2024, ensured full repayment to customers—plus interest—but the fine print stung many.

The valuation was locked at November 2022 prices, long before Bitcoin’s resurgence past $50,000 and Ethereum’s climb back toward previous highs.

The first wave of payouts, which began on Feb. 18, focused on small creditors, with larger claims set to follow.

So far, FTX has recovered between $14.7 billion and $16.5 billion, with ongoing distributions happening through BitGo and Kraken . The next major payout rounds are scheduled for April 11 and May 30.

The repayments have injected some optimism into the crypto community, with over $1.2 billion reportedly entering the market following the news.

Some analysts suggest this could help boost liquidity and fuel an altcoin rally.

However, others worry about the upcoming unlock of 11.2 million SOL tokens on March 1, which could trigger selling pressure on Solana, if too many holders cash out.

The USD Payout Controversy

While some creditors are walking away in profit, others are voicing frustration over FTX’s decision to convert assets into cash at outdated prices.

On Reddit, one user, Ronitovi, shared their experience:

“The current worth of my coins is more than $40,000, but the system forces me to accept $16,000.”

For those who held onto assets through FTX’s bankruptcy, the settlement feels more like another loss than a victory. Some are wondering whether legal action is possible.

“If this payback is going to be just, shouldn’t we get our exact assets back? Can we sue?,” Ronitovi continued.

Other users pointed out the brutal reality of bankruptcy proceedings: Creditors don’t always get what they expect, and alternative options are limited. “I would take what you can get and call it lucky you didn’t get zero,” another user said.

As repayments continue, the divide is clear: Some creditors are emerging with a better deal than they anticipated, while others, particularly those who held onto high-growth assets, feel like they’ve been shortchanged.

But one thing seems to be certain: Taking cash at the time of FTX’s collapse wasn’t as bad as many once feared.