Many customers who were burned when crypto exchange FTX imploded are now watching one company more closely than any other, Elon Musk's rocket maker SpaceX. The reason is simple, a sizeable chunk of FTX's money is tied to that firm through a chain of investments, and SpaceX's climb could directly shape how much of their lost cash comes back.
SpaceX's Rise Lifts Creditor Hopes
SpaceX has already shot well past its initial market valuation of $1.77 trillion. The firm's strong Wall Street debut has fueled optimism among those tracking the FTX bankruptcy that creditors may end up recovering more than earlier forecasts suggested.
Sunil Kavuri, a British investor who lost roughly $2 million when the exchange founded by former CEO Sam Bankman-Fried collapsed, has become a leading voice for Bankman-Fried's other victims. He told TrendKia that "it's always great news seeing good investments that could help recovery and payment to FTX creditors."
TrendKia contacted FTX's bankruptcy estate for comment but did not immediately hear back.
A Projected 171% Recovery
The shuttered exchange has already paid out $10.3 billion to customers, a point Barbara Fried made months ago in a blog post devoted to telling the "untold story" of her son, who recently failed in his attempt to overturn his 25-year prison sentence and fraud conviction.
She pointed to estimates from Kyle Schmidt, a creditor advocate known as "Mr. Purple," who reckons that final distributions could reach a total of 171% of claims for customers whose claims topped $50,000. That figure reflects a surplus built from the estate's asset sales and the interest that has accrued along the way.
"Schmidt suggests that one notable investment [...] is likely to yield significant proceeds this year," Fried highlighted, nodding to FTX's SpaceX stake held via venture firm K5 Global.
In figures shared on April 1, 2026, Mr. Purple (@MrPurple_DJ) noted that FTX creditors with claims above $50k have received 96.6% so far, with overall recovery still projected at 171%.
The Settlement With K5 Global
Last January, John J. Ray III, CEO of FTX's recovery trust, revealed a settlement with K5 Global that closed out a lawsuit the exchange had filed in June 2023. Both sides agreed to cooperate in order to maximise recoveries for FTX stakeholders.
The suit had sought to claw back $700 million in transfers allegedly made using misappropriated funds. K5 still lists SpaceX among its holdings.
"It is clear that K5 is a bright spot in the FTX portfolio," Ray said in a statement. "The expected strong performance of their investments will be a key driver in the recovery efforts."
TrendKia reached out to K5 for comment but did not immediately receive a response.
Meanwhile, SpaceX shares hit a fresh high after Elon Musk's firm agreed to acquire AI startup Cursor for $60 billion.
Will Creditors Really Cash In?
The defunct exchange has yet to comment on SpaceX's Wall Street debut, or on whether creditors stand to benefit at all. Still, Kavuri pointed out that the bankruptcy estate would have to disclose any sale of its K5 stakes through court filings.
The Roots of the Fraud and Its Web of Bets
Before his conviction, Bankman-Fried was accused of stealing more than $8 billion in customer funds. Beyond using that money for political donations and real estate purchases, he also funnelled it into venture capital investments.
At his criminal trial, Bankman-Fried sought leniency by pointing to the success of his bets, which included Robinhood and Anthropic. The presiding judge rejected that argument outright, likening the former crypto mogul to "a thief who takes his loot to Las Vegas."
According to bankruptcy filings, the exchange's SpaceX exposure grew out of a relationship between Bankman-Fried and Michael Kives, a "super-networker" who co-owns K5 Global alongside Bryan Baum.
Around the same time, senators introduced a bipartisan resolution opposing a pardon for SBF.
The filings show that Alameda Research, FTX's sister trading firm, moved huge sums to a K5-affiliated entity, and before the exchange went under in November 2022, one of K5's funds had put $190 million into Musk's rocket maker.
According to Forge, SpaceX raised $1.73 billion that year at a post-money valuation of $125 billion, just months before Bankman-Fried was accused of masterminding a multibillion-dollar fraud.
While the estimate does not factor in shareholder dilution, Kavuri said FTX's SpaceX exposure is likely worth several billion dollars based on the company's current market cap. On Wednesday, SpaceX's market value jumped past $2.52 trillion, according to Yahoo Finance.
