Dollarization of Claims Freezes FTX Repayments at Low Points

[etfs]

The court-approved U.S. dollar repayments from FTX have left creditors frustrated, as crypto prices surged after the exchange’s November 2022 collapse.

ETH and Solana rebounds have similarly reduced real recoveries to roughly 46% and 12%, respectively. Critics argue that converting all claims into dollars locked in losses for individual creditors, while protecting the estate from further volatility.

[Nahid10]

Converting to USD during a crypto rally was a brutal hit for creditors. ️

[EmTeam]

Timing the market wrong again — even after collapse. Painful irony.