FTX to Begin $11.4B Creditor Payouts in May 30, 2025

[DeathAngel]

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?

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.

[BenCodie]

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

What to know:
FTX has gathered $11.4 billion in cash to repay creditors after its 2022 collapse.
Payments to main creditors will begin May 30, according to court proceedings.
A large amount of potentially fraudulent claims still need to be reviewed.

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!

Claims aren't paid in crypto nor are they provided at spot rate:

To calculate the value of your claim for each ticker, take the quantity of each ticker and multiply it by the price in the Digital Assets Conversion Table for the ticker you have a claim for. Add the claim value for each ticker to come up with your total claim value.

From Digital Asset Estimates on the FTX website.

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).

[Russlenat]

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.

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!

[Davidvictorson]

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.

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.

[kryptqnick]

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?

[rdluffy]

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?

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.

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 

[freedomgo]

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?

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.

[Mpamaegbu]

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.

[Japinat]

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.

[Marvell1]

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.

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.

[Lucius]

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.

[freedomgo]

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.

[X-ray]

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.

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 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.

[OmegaStarScream]

Nearly 400,000 FTX users risk losing $2.5 billion in repayments

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?

[rdluffy]

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 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

[BenCodie]

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.

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.

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.

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.

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!

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.

[asriloni]

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.

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.

[Sanitough]

Nearly 400,000 FTX users risk losing $2.5 billion in repayments

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?

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.

[fuguebtc]

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.

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.

[zasad@]

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