Three years after FTXs collapse, creditors wait as the industry rebuilds trust

The collapse of FTX on November 11, 2022, sent shockwaves through the cryptocurrency landscape, leading to significant losses for many investors and prompting urgent calls for greater transparency within the industry. As the dust settles three years later, the crypto market is still grappling with the aftermath, with some creditors yet to receive compensation for their losses.

Centralized exchanges adapt to new demands for transparency after FTX collapse

Following the FTX bankruptcy, centralized exchanges faced a crisis of confidence, resulting in users withdrawing over $20 billion from trading platforms within weeks. In an effort to regain trust, exchanges began to publish proof-of-reserves (PoR) attestations to demonstrate their financial health. Binance was among the first to release a report shortly after FTX's collapse, which allowed users to verify their Bitcoin holdings. Other platforms like OKX, Deribit, and Crypto.com quickly followed suit.

However, the effectiveness of these measures has been debated. Many in the crypto community criticized the reliance on snapshots rather than continuous audits, arguing that without transparency regarding liabilities, these PoR reports were insufficient. Prominent voices within the industry emphasized that simply showing reserves without context does not provide a complete picture of an exchange's financial health.

Many FTX creditors are still waiting for repayment and resolution of their claims

Despite the strides made in transparency, many creditors of FTX remain in limbo. As of early November 2025, FTX has distributed approximately $7.1 billion to creditors through three rounds of payments, yet many have not fully recovered their losses. The first distribution in January 2025 provided over $1.2 billion, but only $454 million was effectively paid to smaller claimants. A larger payout of $5 billion occurred in May, followed by another distribution of $1.6 billion in September.

Creditors are expected to receive further payments, with the next distribution anticipated in January 2026, though this timeline is not confirmed. The total recovered assets for FTX were estimated at around $16.5 billion in October 2024, but repayments are being made in US dollars rather than crypto, causing creditors to miss out on potential gains as the crypto market rebounded. Current recovery rates, when adjusted for the rising value of cryptocurrencies, could range from as low as 9% to as high as 46% of original claims.

Former FTX CEO appeals conviction while facing significant prison time

Sam Bankman-Fried, the former CEO of FTX, is currently serving a 25-year prison sentence for fraud and conspiracy. He has appealed his conviction, claiming he was not allowed to present evidence that FTX was solvent at the time of its collapse. His legal team recently argued before the US Court of Appeals, hoping to overturn the ruling against him. Meanwhile, his former associate, Caroline Ellison, who cooperated with prosecutors, began her prison sentence in late 2024 and is expected to be released in mid-2026.

Decentralized finance protocols push for self-custody and stronger governance

In the wake of the FTX collapse, decentralized finance (DeFi) protocols have also adapted, advocating for self-custody as a crucial measure for protecting users. Industry leaders have noted a shift towards stronger risk frameworks and improved governance within DeFi, aiming to create systems that can better withstand market shocks. This evolution reflects a broader trend in the crypto space, where the lessons learned from the FTX incident are driving initiatives to enhance security and accountability.

As the crypto industry continues to rebuild its reputation and implement reforms, the journey toward greater transparency and trust remains ongoing. The fate of FTX creditors and the regulatory landscape will play critical roles in shaping the future of digital assets.