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FTX Begins Repayments: $1.2B to Smallest Claims

Coin WorldWednesday, Feb 19, 2025 2:08 pm ET
1min read

FTX, the once-thriving cryptocurrency exchange, has initiated the repayment process for users with claims worth $50,000 or less. The first phase of compensation, targeting the 'convenience class' of claims, is expected to distribute approximately $1.2 billion through intermediaries BitGo and Kraken.

Kraken, one of the intermediaries, has already processed funds for over 46,000 creditors, with BitGo confirming it is also processing the funds, which should reflect within the next 72 hours. Most of the first phase of claims are entitled to about 118% in accrued interest. However, it is important to note that the repayments will be in USD, not in the form of crypto assets held by victims at the time of FTX's bankruptcy.

The compensation will be based on the value of the assets in November 2022, when the crypto market was experiencing a significant downturn. During this period, Solana (SOL) was valued at around $8, Bitcoin (BTC) at about $16,000, and Ethereum (ETH) traded at around $1,200.

The second phase of repayment, targeting claims worth over $50,000, is expected to begin on May 30th. FTX Recovery Trust administrator John J. Ray III has stated that the process is ongoing, and they intend to continue their recovery efforts to return funds to additional claim classes. The total expected distribution to FTX creditors by the end of the exercise is approximately $16 billion to $17 billion.

In a separate gesture, Binance founder CZ has pledged to make donations to users who lost money in TST and Broccoli memecoins. However, he clarified that this is not an endorsement of the tokens. Meanwhile, the FTT token, the native token of the defunct FTX exchange, was valued at $2, down 5% on the day amid broader bearish pressure in the market.

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The_Sparky01
02/19
Repayments in USD, not crypto. Smart move considering market volatility.
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breakyourteethnow
02/19
Binance's CZ donating to memecoins victims. Not an endorsement, but a goodwill move? 🤷♂️
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DisabledScientist
02/19
FTT token struggling, not surprising with the bear market
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CorneredSponge
02/19
FTX repayments: finally some good news for hodlers
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bmrhampton
02/19
Repayments in USD, smart move given crypto volatility
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Miguel_Legacy
02/19
@bmrhampton Smart move, but crypto's still risky.
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sniperadjust
02/19
$1.2B distribution is no chump change, long-term play
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SocksLLC
02/19
FTT tanking while FTX repays. Market's got its drama masks on, as usual.
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moazzam0
02/19
@SocksLLC What's your take on FTT's future?
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Urselff
02/19
Solana, Bitcoin, Ethereum prices from 2022 seem like a different era.
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Direct_Name_2996
02/19
@Urselff K boss
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Ok-Razzmatazz-2645
02/19
118% interest? Sweet deal for small claimants. Wonder what the big wallets are thinking though.
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destroyman26
02/19
FTX finally paying up, but no crypto rewards? Kinda ironic, right? 🤔
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GJohannes37
02/19
Kraken processing claims like a pro, no issues here
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goldeneye700
02/19
$1.2B distribution is no chump change. Hope it reaches those who need it most.
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investortrade
02/19
Holding some $AAPL and $TSLA for safety. Crypto's too risky now, IMO.
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Sam__93__
02/19
Kraken processing funds already? Impressive efficiency. BitGo, hurry up! 😅
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CyberShellSecurity
02/19
Binance's CZ donating to memecoins, wild move, not financial advice 🤔
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