Good news for the many victims of FTX. More than two years after the flash crash of the crypto platform, all those who lost funds will be reimbursed. According to the reimbursement plan, validated by the American courts, the distributions began on February 18, 2025. FTX indicates that "customers should expect to receive the funds within 1 to 3 business days".
As a reminder, FTX reimburses the funds based on their value in November 2022, without taking into account the increase in the price of cryptocurrencies over the last three years. In effect, investors must write off the gains they could have made by holding on to their digital assets for all this time. Bitcoin actually went from $20,000 to $100,000 during the liquidation of the FTX empire… The victims must mourn a potential profit of more than 300%. This is still good news for investors, says Magdalena Hristova, head of public relations at Nexo:
$1.2 billion is pouring into the crypto market
As expected, the refunds are organized in several phases. First, the company, under the supervision of the American courts, first reimbursed investors who lost less than $50,000. FTX relies on the claim provided by customers to determine the order of reimbursement. Those who reported losses of less than $50,000 will be served first. This first round of reimbursement concerns the majority of users harmed by the FTX fiasco. They will receive their full claim, plus 9% interest per year, calculated on the value of their assets as of November 11, 2022, the date of the platform’s bankruptcy.
More than $1.2 billion in cryptocurrencies have been transferred to victims’ addresses over the past two days. The funds are being sent to the Kraken and Bitgo platforms, which are responsible for processing FTX’s payments to its creditors. One wonders what will happen to the cryptocurrencies received by the victims. Will the funds, denominated in stablecoins or dollars, be injected into the crypto market, and stimulate the rise in prices, or withdrawn in the form of fiat currency? The victims will obviously choose one or the other option depending on their needs. As a prominent member of the crypto community who goes by the alias Mr. Purple explains to CoinTelegraph, many victims are expected to draw a line under the cryptocurrency:
What’s next?
The second phase of reimbursement is planned to start on May 30, 2025. It covers claims worth more than $50,000. FTX encourages affected individuals to verify the accuracy of their claims by April 11, 2025. In total, between $14.5 billion and $16.3 billion will be paid out to victims this year.
At least some of these funds will swell the supply of cryptocurrencies in the coming months. Larger holders are more likely to reinvest their claims than smaller holders. According to Alvin Kan, COO of Bitget Wallet, “The size of this refund is a significant event, both in terms of capital flow and psychological impact”, and “could boost investor sentiment by showing that the market is recovering.”
0 Comments