Creditors of defunct FTX exchange may only recover 9-46% of lost crypto value due to soaring digital asset prices distorting repayments. Bitcoin at $16,871 during bankruptcy now exceeds $110,000, making 143% cash recovery equal only 22% in BTC. ETH at $4,000 drops real recovery to 46%, Solana at $200 to 12%.

FTX creditor advocate Suni Kavuri’s analysis shows widening gap between court-approved settlements and market prices of assets like Bitcoin. Victims argue claims converted to USD at market low locked in losses. Founder Sam Bankman-Fried claims FTX wasn’t insolvent, and customers could’ve profited from rebound if repaid earlier.

FTX estate defends USD conversion, citing U.S. bankruptcy law valuing claims at filing date for distribution simplification. Debate rages on among creditors over perceived unfair treatment and missed opportunities for profit in the wake of FTX collapse.

Read more at Yahoo Finance: FTX Creditors Lose Twice as Crypto Market Rally Erases Gains From Cash Repayments