Bitcoin Forum

This is probably what the company’s major creditors have been waiting for, considering we’re talking about $11.4 billion here.

It was reported that they had been paying off debts before, but those were likely for smaller creditors. This time, it’s a huge amount, and hopefully, it will have a positive impact on the market once creditors able to receive their refunds.

https://www.coindesk.com/markets/2025/03/29/ftx-to-begin-usd11-4b-creditor-payouts-in-may-after-years-long-bankruptcy-battle

Yes, the last repayments were for those who were owed up to 50,000$. I believe (and someone corrects me if I'm wrong) the initial amount was 16 billion? So they already paid almost 5B to creditors? Can't say that was very noticeable?

Based on the report, they owe a total of $11.2 billion to creditors, while they’ve recovered between $14.5 billion and $16.3 billion.

Looking at these numbers, it seems like they haven’t really started disbursing payments before, and I haven’t read any reports of anyone receiving payouts yet, so this might be the first and possibly the final distribution.

https://apnews.com/article/ftx-crypto-bankman-fried-creditor-6365ceb2565deb891da9b268db94b7a8

Distribution for victims with below $50K claims have begun on February 2025.

Supporting posts from providers who facilitated the payments:
1.https://x.com/BitGo/status/1891912214866788546
2. https://x.com/krakensupport/status/1889058486467838274

I believe there should be user reports on CT or the r/FTXOfficial subreddit.

Though, I think, this is just a small percentage of the money pot. This upcoming one in May is huge—let's see how the market will react.

Wow this is huge! I am sure a lot of folks will be taking profits but we will see what kind of impact it has on the market in a few months time. If there are crazy outflows and it drives the price down a little but it will just be some normal volatility for a while and then the price will probably continue to go back up at that time. Around that time hopefully the US will also make a monster purchase of Bitcoin and maybe we see new a time highs!

Great to see the matter going, even though it's not the end.
Still, I hope that eventually, everything will be paid up.

Thanks for providing proof, it clarifies the matter. But since the initial refund was small, it didn’t create much buzz. However, this time, it’s the biggest refund yet, and as expected, it could have a positive impact on the market. Since this isn’t BTC being refunded, there won’t be any major dumps happening.

In general what I know is that whenever there is a large FTX debt distribution, the market will respond slightly negatively because usually the recipient will immediately sell the long-awaited rights. I have also received several messages to liquidate assets in FTX with several stages including KYC, but because the amount is not large plus having to KYC it doesn't feel comparable to what I get.

Could this be one of the reasons why the market is going down? I believe it can be because a lot of people have been really waiting for this and just want to get done with crypto. I know some people who were affected by this and just didn’t want to be in the cryptocurrency market because of their negative experiences.

A lot of people might be sending this once they receive their payout.

As mentioned in the report, "FTX has gathered $11.4 billion in cash to repay creditors after its 2022 collapse."

This shouldn’t impact the market negatively since it’s not Bitcoin being distributed. In fact, it could have a positive effect because this money can be reinvested back into the market.

Every time I see something about this FTX distribution it is different than the last news. It would be nice if we got some fresh powder dumped on the market before more people panic sell to Blackrock. Hopefully this isn’t another mtgox situation where these people will still be waiting for their funds in a decade.

The distribution payouts are in CASH so it will certainly have a positive impact on the market, the only question is by how much.

Paid in cash so, not really.

But every time that there's a news like this, it could be a market mover so if it's about the possibility of the reasons. There is a chance but we can't be sure if this is the actual reason why the market is bleeding.

I'm expecting that we shall see the rally by that time when the payment is released.

That’s something we don’t know, but I also don’t think it’s that hyped, so I’m not expecting a huge positive impact. Because from what I’ve noticed, traders actually prefer negative impacts over positive ones when exchanges are involved so they can buy cheap and make some easy short-term profits.

It should be a positive factor because statistically at least some of that money will go back into bitcoin. If you had an investment and the holder of that investment went bankrupt, this doesn't mean you'll be done with the asset. Personally, I'd get scared at first, then probably for the first few months until it was not clear that they will claw back any funds I'd most likely feel depressed and say goodbye to the money, and then being actually given some of it back, I'd put it back to work.

It's possible some of the debtors will be bankrupt by then and have loans to pay. These people will use FTX repayments to get back on their feet. Those who are in a stable condition will most likely still buy cryptocurrencies, especially since they can safely get into Blackrock ETF.

The amount is really big and they announced that they have collected this amount by selling their assets and by booking profit from other investments, if I did not get that announcement wrong, point is they had this amount of money don't know if that money is clear or not but at least they are willing to repay but I thought they already started repaying and you said they did not.

Well, I just checked the news and I was confusing it with MT Gox, well, at that time they will be paying those who have less than $50k.

The Mt Gox disbursement to affected investors has not been straightforward. The trustee kept postponing the repayment several times because it started happening last year. I guess some investors might have died before the money started coming in. So I commend the handlers of FTX asset recovery and repayment process led by the new CEO, John Ray III. Hopefully, everyone who lost money will get it back.

How many times has this payout thing been postponed though? And who else's thinks they will postpone it again?

I am one of the people who believes that they will do it again. Imagine the reason for the recent change of distribution dates was because they had a "quadrillion false claims" Like how does this happen if a user is supposed to first log in using former FTX login credentials, fill in the 2FA codes, undergo serious KYC verification that has to be passed before even filing for any claims  ::)

And some died owed to the stress brought by this fallout. I guess very few can actually get their refunds. Then, for sure the entity holding such huge amount of money will be the one benefiting from it.
For the documented creditors with high amount owed by this company, I believe, they will refund them first.
But why it is up until now, they haven't disbursed them yet? It was said last year that they will start distributing this Jan 2025, and yet, we are already in April and no news yet of the distribution. Creditors are expected to get about 119% of their claim though. But for small holders in the defunct exchange, I believe, you need to wait longer than these big time creditors.

 https://www.cnbc.com/2024/10/07/ftx-bankruptcy-judge-approves-more-than-14-billion-payback-plan.html (http://FTX creditors will make money on bankruptcy: $1.19 for every dollar)

Surely, a big amount of cash will remain unclaimed. I don't know what they will do with it, but I can only hope that the money that remains are those who belong to creditors who willingly waived their claims one way or another.

However, it seems much of what will be left are money of those who badly want to get refunds but can't because of the poor refund system. The last time, valid claimants in many parts of the world are left with no choice because the available refund options aren't available to them.

If they still don't have such options until now, this is another round of stress for them. What they got was false hope.

That was tor lower net worth individuals though. Maybe they need the fiat more & are more hesitant to get hack into crypto. With any luck, the larger creditors will ape back into Bitcoin to add some much needed liquidity to the market. We could do with some more buyers to pump our bags.

Claims aren't paid in crypto nor are they provided at spot rate:
From  Digital Asset Estimates on the FTX website (https://support.ftx.com/hc/en-us/articles/24863020316948-Digital-Asset-Estimates).

No profits to be taken, unfortunately for the claimants they missed out on any appreciation in comparison to if they didn't trust FTX with custody over their crypto. Another not your keys not your coins.

This also shouldn't effect the market negatively (if anything it will be positive as previous bitcoin/crypto investors now receive cash which they will probably use a portion of to repurchase crypto).

That's still a lesson learned, but at least it's better than getting nothing back. Some exchanges that get hacked or go bankrupt can't refund users at all because they're left with no assets. In this case, it's good they managed to sell the company's assets and convert them to cash to pay refunds. I even heard there was a small increase, about 10% on the original balance from when the bankruptcy was filed. A 10% return is far better than losing everything!

It was about a month ago that they paid the smaller creditors. I think those whose amounts where between $50,000 and lesser. The company managing this distribution has done a great job and there has been no complaint whatsoever. What I keep telling myself is that after May 30, 2025 we are going to see more liquidity, there will be more increase buying and the will increase the price. At this time I hope those accounts have realized that it is not bitcoin but it is the company they got themselves involved with.

The process of recovering funds after the FTX situation remains relevant. I think it's nice that they went to small creditors first. I realize it was probably just because they couldn't afford much more, but it is also more reasonable because the small ones (if it's small debt to small companies rather than small debt to big companies) need it more.
But will it affect Sam Bankman-Fried? He's serving a 25-year sentence right now. Perhaps the idea is that by paying off tons of debt, his situation can be improved?

I was one of those who already received amounts below 50k USD (well below hehehe), and part of what I received has already gone back into the crypto market, and the rest I left in USDT and USDC

I believe that most users have also done the same thing, but there's no way of having this metric, it must have had an impact
Now the amount to be distributed can be quite good liquidity for the current market, since these 11.4 billion are out of the market, it will be interesting if at least a part goes to the crypto market liquidity

The market seems to be in huge need of liquidity, and it also seems to me that the FTX sales are over  :)

The company no longer has issues with creditors or users since they’ve raised enough money to process refunds. Plus, FTX isn’t managing this anymore, it’s now under government control, with a set schedule to ensure everyone gets their refunds.

As for their CEO’s legal case, his sentence could potentially be reduced, especially if all affected clients are repaid. I mean, if Trump could pardon someone like Ross Ulbricht, who faced far more serious charges, then there’s definitely a chance here. But for now, let’s focus on the refund progress, as this could positively impact the market.

This is great news and glad tidings for FTX creditors, indeed.

Again, this is a plus for centralized exchanges. For those who browbeat Cexs they should see this and realize that if similar situation like that occured with Dexs, it's forever goodbye to their funds. Any Dex hack, it's bygone forever. With Cexs, chances or recovery are there.

That’s the big difference. there are real pros and cons to using DEXs. While they offer full privacy and anonymity, the downside is that if something goes wrong, you can pretty much kiss your money goodbye. On the other hand, with CEXs (centralized exchanges), there’s no guarantee either. Just look at FTX: if it had been hacked instead of collapsing into bankruptcy, users likely would’ve lost everything since most exchange insurance can’t cover a full-scale theft. The only silver lining with FTX was that bankruptcy forced them to liquidate assets, and luckily, there was enough to refund users.

With Mt.gox and FTX refunding users, this is really great and a plus for centralized exchanges. But I wouldn't take this as a criterion to use centralized exchanges without caution or encourage people to use them more.

It took more than 10 years for victims of the Mt. Gox collapse to get their money back. Meanwhile, FTX paid earlier, but instead of paying in BTC and other crypto, they converted and paid in USD at the price at the time they declared bankruptcy (if I remember correctly, the price of BTC at that time was around $20k). This also caused serious damage to people as the price of bitcoin at one point reached $109k and is trading at over $80k.


Even though they have paid off their creditors and users after all these years...we should still only use centralized exchanges with limits and be careful, not to be subjective and trust them too much.

The good news is that the debts will be returned (sooner or later), and not only for those who were victims of this whole tragedy, but perhaps also for the SBF who, after all the money is returned, would have a good argument to be released earlier. Considering what has been happening in the US in recent months, I wouldn't be surprised if his request is approved.

I wish that were the case, but it ultimately depends on the government. His charges are serious, securities fraud and money laundering and they come with severe consequences. However, given how the justice system works in the U.S., especially when big money is involved, who knows? His sentence might still get reduced.

If we compare his case to CZ’s, both violated anti-money laundering laws, but the key difference is that CZ didn’t steal customer funds, while SBF did. Because of that, this case likely won’t end the same way CZ’s did.

the waiting period for the refund is really pain in the ass though on top of the things you mentioned in regard to their asset calculation.
the fact that people suddenly lose access to money means there's many things they need to make up for. like paying rents, etc.
definitely avoid holding crypto in exchange for too long.

Nearly 400,000 FTX users risk losing $2.5 billion in repayments (https://cointelegraph.com/news/ftx-creditors-risk-losing-2-5b-missing-kyc-deadline)

I'm not sure how much percentage does this represent from all of the users, but it's actually insane to think about. I cannot fathom that such a big number of users still didn't manage to verify their identity?

I hope not hehe, SBF was extremely dishonest with all the victims and on top of that he doesn't recognize that he made a mistake, that's quite dangerous in my opinion

I don't know what the situation is like with the taxes they owe to the US government, but I think this could be a big problem for him
I don't doubt that he has some hidden wallet with a few million dollars waiting for him if he's released

That's true and we can only hope that it's a lesson learned, though I would not be surprised if some of these people joined an FTX 2.0 and trusted it just the same. Some people supported this idea when it floated around a year ago, some just do not learn.


What I wonder is if they would complain about this formula if the price was even lower. I think that there's no way to resolve this kind of circumstance without complaints on both sides.

Let's lower our expectation to the FTX cash refunded to their users. I believe only a few percents may be going back to the bitcoin. The rest may be just still stay in cash following the big down happens in world economic.

It's also important to remember the cash to be refunded to their users can be less than 11.4 b. It's because there are hundreds thousand of users have not yet completed their KYC until the deadline. It means more than two billions to be deducted or unavailable to claim.  (https://coinmarketcap.com/academy/article/400000-ftx-users-face-loss-of-dollar25-billion-in-repayments-after-missing-kyc-deadline-extension)

That amount could potentially become government income since they're now managing the funds. Given this news, it suggests either:

- Many FTX users never completed account verification, or
- The requirements to claim refunds might be stricter now

Some exchanges only require basic KYC verification, but the bar seems higher for FTX repayments.

Microstrategy is still buying steadily, bitcoin ETFs still hold over 1 million bitcoins which means billions of dollars are still flowing into the market over the past months but BTC is being dumped as if no money is flowing in. Expecting a few billion dollars of FTX to flow into the market and revive the market is unrealistic and sets expectations too high.


You're right, not to mention the entire financial markets are dumping heavily, and there's no sign of things stopping anytime soon as the tariff war has only just begun. Those who just received compensation from FTX will not rush to invest that money in the current bearish market. They certainly don't want to risk losing money they've waited years to receive.

If we want the market to recover, let's expect Trump to stop doing the things that are hurting it because he is the cause of them.

Donald J. Trump(C)
 Nov 3, 2024
"If Kamala wins, you are 3 days away from the start of a 1929-style economic depression. If I win, you are 3 days away from the best jobs, the biggest paychecks, and the brightest economic future the world has ever seen.

Kamala’s inflation nightmare has cost the typical American family $30,000 dollars in higher prices—and now, she wants to impose the largest tax hike in American history, and raise your taxes by $3,000 dollars a year.

I will massively cut taxes for workers and small businesses—and we will have NO TAX ON TIPS, NO TAX ON OVERTIME, and NO TAX ON SOCIAL SECURITY benefits!"
https://x.com/realdonaldtrump/status/1852944751370109241?s=46

 ;D ;D

Another important difference is that CZ had enough money to buy his freedom, while SBF clearly did not. In the end, those from the US might regret not asking for twice as much, because I have no doubt that he would pay $10 billion.

---

Maybe, but I somehow doubt he was intelligent enough to do that, because everything he did turned out to be very bad and thoughtless, which ultimately cost him his freedom. However, let's imagine a situation where he gets out of prison one day and decides to access his hidden crypto treasure, and gets caught red-handed again.

It is possible that there are addresses to which cryptocurrencies were transferred that are known to the authorities, but they currently do not have access to them - this does not mean that they will not continue to monitor them in the hope that someone will access them someday.

Is there nobody here on this platform who got affected by this scenario to come up in confirming that they truly have started paying up and that they received their payment? This just looks to me like it is unrealistic because it does not look real, maybe because the internet is not buzzing to the payment; hence it seems as if nothing is happening.

You’ll quickly learn that a very high % of the members on this site don’t actually own any crypto or participate in the economy at all.

Last news I read on this subject was that they pushed the KYC date back to June 1st, so I would guess that distributions won’t be happening for at least a month after that.