#FTXRefunds Compensation for Clients of the Collapsed FTX Platform**
After the collapse of **FTX**, one of the biggest cryptocurrency scandals in 2022, clients began receiving compensation for their lost funds. Here are the main developments:
#### **1. Background of the Collapse**
- In **November 2022**, FTX announced its bankruptcy after discovering a **multi-billion dollar shortfall** in its reserves.
- Its founder **Sam Bankman-Fried (SBF)** was convicted of **financial fraud** and sentenced to 25 years in prison.
#### **2. Compensation Process**
- **Investigators** are recovering funds from the sale of FTX assets (investments, real estate, political donations).
- **Compensation Rate**: Clients expect to recover **~90-100%** of their balances (at Bitcoin's price at the time of bankruptcy ~16,000$), although its value is now higher.
- **Early Payments**: Began in 2023-2024, some creditors received **100%** of their dues.
#### **3. Criticisms and Issues**
- Angry clients demand the current market price of Bitcoin (much higher than in 2022).
- Legal complications are delaying some payments.
#### **4. Lessons Learned**
- The importance of **self-custody** of cryptocurrencies (wallets not linked to platforms).
- Risks of trading on platforms that are not subject to strict regulation.
📌 **Follow-up Sources**: The official **FTX Bankruptcy** website, and reports from **Coindesk** and **Reuters**.
