Following FTX’s collapse, bankruptcy documents show that creditors are expected to recover only 10-25%. FTX creditor Sunil Kavuri noted that the refunds were based on the cryptocurrency’s price at the time of the bankruptcy, which has caused great dissatisfaction among creditors. For example, Bitcoin was worth around $16,000 at the time of the bankruptcy filing, but is currently worth around $65,640.

Kavuri argued that FTX founder Sam Bankman-Fried violated his property rights by using customer funds to pay off other debts. He also noted that in September 2024, FTX reached an agreement to seize $600 million worth of Robinhood shares to repay creditors.

In addition, there has been widespread opposition to FTX’s restructuring plan. A US trustee has objected, claiming that the plan overprotects executives. The SEC has also said it may oppose the plan if it includes refunds in stablecoins. This has raised questions about investor protection mechanisms in the crypto sector.