#FTXrepayment

FTX, the collapsed cryptocurrency exchange, has initiated repayments to its customers over two years after its bankruptcy in November 2022. The first distribution occurred on February 18, 2025, with approximately $1.2 billion disbursed to creditors.

The repayment plan, approved by a U.S. court in October 2024, aims to return up to $16.5 billion in recovered assets to customers. Priority is given to customers with claims of $50,000 or less, who are expected to receive full repayment within 60 days of the plan's effective date.

Subsequent repayment rounds are scheduled for April 11 and May 30, 2025. FTX is collaborating with cryptocurrency platforms Kraken and BitGo to facilitate these distributions.

Despite the repayments, customers have expressed concerns about missing out on significant gains in the cryptocurrency market since FTX's collapse.

The repayments are based on account values as of November 2022, and returning the original cryptocurrency assets was deemed unfeasible.

In related legal proceedings, FTX founder Sam Bankman-Fried was sentenced to 25 years in prison for his role in the fraud leading to the exchange's collapse. Caroline Ellison, former CEO of Alameda Research, an FTX affiliate, received a two-year prison sentence for her involvement.