In November 2022, the collapse of FTX created a significant financial void in the cryptocurrency markets. Investors suffered losses amounting to billions of dollars. Institutional clients collaborating with FTX and its affiliated companies faced even greater losses. As a result, SBF was imprisoned, and the backlash from Democrats towards cryptocurrencies was evident. Fast forward to the present, there are discussions around a purported 143% refund, suggesting the losses have been compensated. But is this claim legitimate?
FTX Refund Process
Over an extended period, efforts have been made to refund billions of dollars to FTX’s creditors, largely completing the process. Creditors followed the steps communicated to them and managed to recover a portion of their funds. However, the refunds were based on the market prices during the 2022 collapse, leaving investors less than satisfied.
During the FTX bankruptcy, the cryptocurrency market saw massive devaluations in altcoins. Bitcoin (BTC) 
$77,710 dropped below $20,000, and talk of even lower dives below $15,000 circulated. Creditors couldn’t withdraw their owed amounts since the equivalent values weren’t available in FTX’s wallets. Assets were gradually liquidated and converted to cash, and as the market rebounded, the FTX bankruptcy committee sold these assets at prices higher than those in November 2022. This led to a misconception that creditors received more than their dues.
Airdrop to FTX Defrauded
FTX creditor representative Sunil clarified that, contrary to claims, creditors did not receive a 143% refund, with recovery rates ranging from 9% to 46%. Many altcoins saw significant price surges, and cash refunds were processed based on 2022 prices. Despite the controversial debate over in-kind refunds, the court did not approve it. Hence, even if the nominal refund suggests 143%, creditors find it impossible to replenish their cryptocurrency holdings completely.
“Outside the bankruptcy process, projects are expected to provide additional recovery through airdrops to FTX creditors. Paradex has already conducted a token airdrop to FTX creditors, and more projects are anticipated to follow suit.” – Sunil, FTX creditor representative
Sunil’s introduction of the airdrop topic brings hope for further compensation for some of the losses suffered by FTX creditors.
