FTX Group is entering the final stages of bankruptcy liquidation, with creditor claim prices rapidly climbing—fueled in part by the crypto market recovery. A key driver is FTX's substantial holdings in SOL (Solana), which has more than doubled in value, becoming the fifth-largest cryptocurrency by market cap and surpassing Ripple (XRP). This development offers a glimmer of hope for millions of FTX users and creditors.
Remarkable Rise in FTX Creditor Claims
Data from Cherokee Acquisition shows FTX creditor claims have surged from 50–53 cents per dollar in late October to 57–73 cents per dollar as of November 2023. This uptick follows the October 16 update from FTX’s bankruptcy administrators, indicating that if the revised plan is approved, customers of FTX.com and FTX US could collectively recover "over 90% of globally distributable value."
Unresolved Variables in FTX Claims
Despite the price increase, Cherokee analysts note uncertainty remains regarding:
- Final payout percentages for creditors.
- Timing of distributions.
Post-Collapse: Claims Once Traded at 10 Cents
After FTX’s November 2022 collapse, founder Sam Bankman-Fried (SBF) was arrested for fraud and awaits sentencing. Creditor claims initially plummeted to 10 cents per dollar.
Key Drivers Behind the Surge
- Anthropic Stake: FTX holds shares in AI startup Anthropic, backed by Google and Amazon. (Anthropic’s valuation has grown 5x, potentially increasing recoverable funds for FTX customers).
- SOL Holdings: FTX owns significant Solana (SOL), which has rallied 650%+ this year. SOL traded below half its current price pre-FTX collapse.
Risk Advisory
Cryptocurrency investments carry high volatility and risk of total capital loss. Investors should assess risks carefully.
FAQ
Q1: How much can FTX creditors expect to recover?
A: Current estimates suggest 57–73 cents per dollar, with potential for higher payouts if the revised distribution plan is approved.
Q2: What’s driving the price increase in FTX claims?
A: Primarily SOL’s appreciation and FTX’s stake in Anthropic, whose valuation has skyrocketed.
👉 Explore how SOL’s growth impacts creditor recoveries
Q3: When will FTX creditors receive payments?
A: No confirmed timeline yet, but updates suggest mid-to-late 2024 for initial distributions.
Q4: Why did FTX creditor prices drop to 10 cents initially?
A: Extreme uncertainty post-collapse—fraud revelations and asset freezes eroded confidence.