FTX has begun the first phase of a $1,2 billion payout to creditors

Some creditors have criticized the payout model, which reimburses claimants based on cryptocurrency prices at the time of bankruptcy

19.02.2025 - 10:00

2 min

What’s new? Former users of the bankrupt FTX platform, whose assets did not exceed $50 000, began receiving their first payouts through the Kraken exchange and BitGo service. Their losses will be reimbursed at the exchange rate as of November 2022. At that time, the value of cryptocurrencies was approximately as follows:

1 ВТС — $16 800

1 ЕТН — $1250

1 SOL — $16

According to Sunil Kavuri, a spokesperson for FTX, the largest lender group, 162 000 of the 460 000 wallets have already received a total of $800 million. Speaking to Cointelegraph, Alvin Kan, the COO at Bitget Wallet, noted that the $1,2 billion payout could lead to “a significant portion reinvested into cryptocurrencies, potentially impacting market liquidity and prices.” He also added:

“This event could boost investor sentiment by demonstrating market recovery from the FTX collapse, though the sentiment might be mixed due to the payout being based on lower 2022 valuations. The scale of this repayment marks a notable event in terms of both capital flow and the psychological impact on crypto investors.”

Despite the positive news, some creditors have criticized the payout model, which reimburses claimants based on cryptocurrency prices at the time of bankruptcy. For example, bitcoin prices have risen more than 370% since November 2022.

What else is known? On November 11, 2022, the central crypto exchange FTX and its US division FTX.US filed for bankruptcy. Founder and former CEO Sam Bankman-Fried was detained in the Bahamas on December 12 and later extradited to the United States. He faces several charges, including digital asset fraud and conspiracy to defraud investors.

A New York court jury at the end of the trial unanimously found Sam Bankman-Fried, the founder of the bankrupt crypto exchange FTX, guilty on all seven charges, which carry a maximum sentence of 115 years in prison cumulatively.

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