Summary
- Following last week's IPO, the rise in SpaceX's stock may benefit creditors of FTX, which had invested in the company before its downfall.
- Some speculate that as SpaceX’s market capitalization surpasses $2.5 trillion, it could lead to greater payouts for victims of Bankman-Fried.
- The judge in Bankman-Fried’s trial once likened the ex-CEO’s investments to a thief taking stolen goods to Las Vegas.
Creditors affected by the collapse of FTX, co-founded by Sam Bankman-Fried, are closely monitoring the company's performance following SpaceX's IPO.
As SpaceX's stock soared past its initial valuation of $1.77 trillion, it has raised the hopes of those observing the bankruptcy proceedings, suggesting that creditors might receive more than previously expected.
Sunil Kavuri, a British investor who lost about $2 million due to the FTX collapse and advocates for other victims, shared with Decrypt that "it's always encouraging to see investments that could aid in recovery and repayment to FTX creditors."
Decrypt reached out to the FTX bankruptcy estate for insights but has not yet received a reply.
According to Barbara Fried, the defunct exchange has distributed $10.3 billion to customers, as noted in a blog post aimed at sharing her son’s story, who recently lost an appeal against his 25-year prison sentence for fraud.
Fried referenced estimates from Kyle Schmidt, a creditor advocate known as “Mr. Purple,” who projected that final distributions could reach 171% of claims for customers with claims over $50,000, based on asset liquidations and accrued interest.
“Schmidt indicates that a significant investment is poised to generate substantial returns this year,” Fried pointed out, referring to FTX’s investment in SpaceX through K5 Global.
FTX Creditors with >$50k Claims
Recovery still projected at 171% after receiving 96.6% so farDetails below 👇 pic.twitter.com/EPvK3shOdE
— Mr. Purple (@MrPurple_DJ) April 1, 2026
In January of the previous year, John J. Ray III, the CEO of FTX’s recovery trust, announced a settlement with K5 Global to resolve a lawsuit initiated by FTX in June 2023. Both parties agreed to collaborate to maximize recoveries for FTX stakeholders.
This lawsuit aimed to recover $700 million in transfers made with allegedly misappropriated funds. K5 continues to list SpaceX in its portfolio.
“K5 represents a bright spot within the FTX portfolio,” Ray stated. “The anticipated strong performance of their investments will be crucial for recovery efforts.”
Decrypt also sought comments from K5 but has not yet received a response.
The exchange has not made any comments regarding SpaceX’s IPO or its potential benefits for creditors, but Kavuri noted that the bankruptcy estate would need to disclose any sales of stakes in K5 through court documents.
Prior to his conviction, Bankman-Fried was accused of misappropriating over $8 billion of customer funds, which he allegedly used for political donations and real estate purchases, as well as for venture capital investments.
During his trial, Bankman-Fried argued for leniency based on the success of his investments, which included Robinhood and Anthropic, but the presiding judge dismissed his claims, likening him to “a thief who takes his loot to Las Vegas.”
The connection between FTX and SpaceX originated from a relationship formed between Bankman-Fried and Michael Kives, a “super-networker” and co-owner of K5 Global with Bryan Baum, as detailed in bankruptcy filings.
The filings indicate that Alameda Research, FTX’s affiliated trading firm, transferred substantial sums to a K5-related entity, and prior to FTX's collapse in November 2022, one of K5’s funds had invested $190 million in SpaceX.
SpaceX secured $1.73 billion at a post-money valuation of $125 billion that year, just months before Bankman-Fried faced allegations of orchestrating a multibillion-dollar fraud, according to Forge.
While this estimate does not account for shareholder dilution, Kavuri suggested that FTX’s stake in SpaceX could be valued in the billions, given the company's current market cap. As of Wednesday, SpaceX's market valuation exceeded $2.52 trillion, as reported by Yahoo Finance.