FTX to Start Paying Out Victims: Creditors Will Receive Up to 102% of Their Funds
Date: 2025-05-16 Author: Oliver Abernathy Categories: BUSINESS
FTX Recovery Trust has announced the start of the second phase of payments to clients affected by the collapse of the cryptocurrency platform. Transfers will be made in US dollars at the exchange rate in November 2022, the moment the exchange went bankrupt. The Kraken and BitGo platforms are used to carry out transactions.
At this stage, four categories of creditors will receive compensation. Depending on their affiliation with a particular group, depositors will be able to return from 54% to 102% of their deposits. The amount of the payment is determined by the classification conditions and the claims procedure.
FTX CEO John J. Wray commented on the situation, emphasizing the importance of the current stage: “This is the first significant step in the refund process. The scale of the work and the number of victims make this task unique. We are proud of the results achieved and will continue to seek fair compensation for all those who suffered losses. We are paying special attention to the outstanding claims, hoping to settle them in the near future."
FTX was one of the largest crypto exchanges in the world before bankruptcy. However, in November 2022, the exchange collapsed, causing a chain reaction in the market. In 2024, the project's management officially abandoned the idea of restoring the platform.
FTX founder Sam Bankman-Fried was sentenced to 25 years in prison in March 2024 on charges of fraud and embezzlement of customer funds. He continues to insist that the exchange's assets would have been enough to fully compensate for the losses, if not for the intervention of the US authorities, which, according to him, provoked the collapse.
The process of compensating funds is ongoing, and the current payments have become a signal that the case is starting to move towards a fair conclusion.
