More than two years after the dramatic collapse of cryptocurrency exchange FTX, former customers are finally beginning to receive refunds. The court-approved bankruptcy plan, sanctioned in October 2024, aims to return up to $16.5 billion to creditors—an unprecedented recovery in the crypto sector.
🔍 Background: What Happened to FTX?
FTX, once a leading global crypto exchange, filed for bankruptcy in November 2022 after revelations that billions in customer funds had been misused by its sister company, Alameda Research. The fallout left over a million users locked out of their accounts. Founder Sam Bankman-Fried was later convicted of fraud and sentenced to 25 years in prison.
💸 How Much Are Customers Getting?
Under the approved plan, most customers are set to receive 100% of their account balances as of November 11, 2022, plus an additional 9% interest. This means many will recover more than they originally deposited—a rare outcome in bankruptcy cases.
However, refunds are based on the U.S. dollar value of crypto holdings at the time of bankruptcy. This has led to dissatisfaction among some customers, as the value of cryptocurrencies like Bitcoin has significantly increased since then.
📅 Key Payout Dates
February 18, 2025: First round of payments initiated.
April 11, 2025: Deadline for mid-range claimants (over $50,000) to verify claims.
May 30, 2025: Second round of payments begins for verified mid-range claimants.
Mid-to-late 2025: High-value and institutional creditors expected to receive payouts.
🧾 How to Claim Your Refund
Eligible customers must use the official FTX Customer Claims Portal at claims.ftx.com. Steps include:
1. Account Verification: Log in with your FTX credentials.
2. Review Account Balance: Confirm your balance as of November 11, 2022.
3. KYC Compliance: Complete identity verification by submitting a government-issued ID.
4. Submit Tax Forms: Provide necessary tax documentation.
5. Select Distribution Agent: Choose a partner like BitGo or Kraken to receive funds.
Customers who miss initial deadlines may still qualify for later distributions.
