The judge provided a good counterargument: if a thief burgles a bank, goes to Vegas and doubles his money and gives the original amount back to the bank, does that deserve punishment?

So he stole stuff in 2022 at a low point, and now his victims are going to be paid 30% the cost of what it would take to rebuy it? That's "repaid in full" in your mind? Losing 70% of their BTC?

This keeps getting repeated... does anyone beside the defense attorney support this statement?

The victim impact testimony of ruined lives doesn't align with it.

FTX claims are being sold for 96 cents on the dollar, so there's high expectation that creditors will be paid in full.

There's the loss of liquidity for years and loss of opportunity cost. It's not victimless by far.

You're not repaid in full unless all your assets are returned, which would be of significantly higher value now than when they were stolen.

Exactly this. If you gave FTX bitcoin, the only way to be repaid is in bitcoin. You did not give them dollars.