#FTXRefunds One of the world’s largest cryptocurrency exchanges, FTX, has collapsed, with what is reported to be an $8bn (£6.8bn) black hole on its balance sheet. Of its 1 million users, many are now unable withdraw their funds. On Friday, the FTX group, run from offices in America but headquartered in the Bahamas, filed for bankruptcy protection in the US.

FTX’s rival, Binance, has played a key role in the saga..

FTX is planning to repay most of its customers, with those owed less than $50,000 receiving their original claim amount plus interest. The repayment will be in fiat currency based on the value of cryptocurrencies at the time of FTX's collapse in November 2022, according to a court filing.

Here's a more detailed breakdown:

Repayment Plan:

FTX's bankruptcy plan, approved by a US court, aims to distribute between $14.7 billion and $16.5 billion to customers, according to court documents.

Who is eligible?

Nearly all FTX customers are eligible, including those who had a digital asset on the platform when it collapsed in November 2022.

Repayment Amount:

Customers will receive their full claim amount in US dollars, plus interest.

How will the repayment be calculated?

The amount will be calculated based on the value of the crypto assets at the time of the bankruptcy filing (November 2022).

Timelines:

Repayments are expected to begin for customers with claims of $50,000 or less by the end of 2024, according to a court filing. Large institutional creditors may receive repayments in staggered installments.

Missing out on gains:

While customers will receive their original amount plus interest, they will not receive any gains from the rise in cryptocurrency prices since November 2022.

Recovery process:

FTX has recovered assets through various means, including selling off remaining assets and pursuing legal action.

Assisting with distributions:

Crypto exchange Kraken and crypto custodian BitGo are assisting with the bankruptcy distributions, according to Investopedia.