FTX Creditors Still Unpaid Three Years After Collapse

It’s been three years since crypto exchange FTX imploded in November 2022, but thousands of creditors are still waiting for their money. The collapse, one of the largest in crypto history, wiped out billions in user funds and sent shockwaves through the entire industry. Despite a wave of transparency initiatives, the situation for many FTX creditors hasn’t improved. Court proceedings, asset recovery efforts, and bankruptcy complexities have delayed repayments.

While some assets have been recovered and sold off, payouts remain pending, leaving retail users and institutional investors frustrated. The expectation of a swift recovery has faded, as legal wrangling and valuation challenges continue to hold things up.

Transparency Push Post-FTX: Has It Worked?

In response to the FTX scandal, many crypto platforms rushed to implement proof-of-reserves and publish third-party audit reports. These moves were aimed at rebuilding trust and ensuring that customer funds are truly backed 1:1. However, critics argue that these efforts are more about optics than actual accountability.

Proof-of-reserves tools, while helpful, often lack transparency on liabilities — the other side of the balance sheet. This means exchanges can appear solvent while still being at risk. Some platforms have abandoned or quietly reduced their commitment to regular audits altogether.

What’s Changed—and What Hasn’t

The FTX case exposed serious gaps in governance, risk management, and regulatory oversight in crypto. While there has been some progress—such as new compliance standards and increased scrutiny—fundamental issues remain. Insolvent platforms, delayed creditor payments, and a lack of legal clarity continue to be problems in the space.

The FTX situation remains a cautionary tale. As the crypto market matures, its ability to protect user funds and deliver justice to those affected will be a key measure of its long-term credibility.