New bankruptcy documents from FTX have revealed that creditors may only recover 10-25% of the value of their cryptocurrency holdings. According to Sunil Kavuri, an activist and creditor, the reimbursement will be based on the value of cryptocurrencies at the time FTX filed for bankruptcy. For instance, Bitcoin was priced around $16,000 during that period, significantly lower than its current value.

This development has angered many creditors, who argue that they are not being compensated for the true present-day value of their assets. Some creditors have reported experiencing severe emotional distress due to the situation, with a few even citing feelings of panic and suicidal thoughts.

Sunil Kavuri has accused FTX's former CEO, Sam Bankman-Fried, of violating the exchange's terms of service by misusing customer funds. Kavuri alleges that these funds were used to settle FTX’s outstanding debts, including transferring money to Alameda and purchasing Robinhood shares.

According to FTX’s terms of service, customers retain ownership of their digital assets, but Bankman-Fried's actions were said to have breached this agreement. On September 6, 2024, FTX reached a settlement with Emergent Technologies, a company founded by Bankman-Fried, to use $600 million worth of Robinhood shares to repay creditors.

In August 2024, bankruptcy trustee Andrew Vara opposed FTX’s reorganization plan, claiming that it granted excessive legal protections to FTX’s management and estate representatives, which is unusual in similar cases. Vara cautioned that these protections surpassed the standard allowances typically given to bankruptcy professionals. Additionally, the U.S. Securities and Exchange Commission (SEC) could object to the plan if FTX decides to reimburse customers using stablecoins.