I saw the update yesterday regarding FTX creditors who have received 120% of their claims. AICryptoCore reported that nearly 98% of them have been fully recovered or more. This development is really interesting because many people expected a total loss from the FTX collapse.

But the twist here is the ongoing legal battle. The camp of a well-known crypto figure filed on October 31, 2025, an argument that FTX was not truly bankrupt and still had enough assets to settle everyone. While they have a point regarding the recovery numbers, this approach is controversial because it separates creditors from potential gains if asset values increase further.

The payment method based on valuation at the filing date also became a pain point. Many say it’s unfair because creditors cannot capture the upside if holdings increase in value. It’s basically a debate about crypto taxation practices and asset management strategies exposed by the entire FTX saga.

It truly shows how complex bankruptcy proceedings are in the crypto space. It’s not just simple liquidation; there are many moving parts still.