FTX announces 4th phase distribution.

[IjawMan]

I'm aware we are all aware of this story from the origin since the collapse of FTX after mismanagement of customers money under their custody which led to massive withdrawals by customers causing the the Exchange to collapse with many customers not able to get their money back.

Fast forward to the repayment of customers for their loss, a fourth phase distribution of  $2.2 billion has been announced to be distributed to creditors by 31st March, 2026.

Bankrupt crypto exchange FTX is set to distribute its fourth payout on March 31, 2026, distributing $2.2 billion to approved creditors. Multiple groups are nearing full recovery, with some reaching 100% repayment, while others still await final payments.

Meanwhile, the funds will be sent through trusted partners like BitGo, Kraken, and Payoneer.

Eligible users can expect to receive their funds within 1 to 3 business days, depending on the payout method they selected.
https://coinpedia.org/news/ftx-to-distribute-2-2b-to-creditors-in-fourth-payout-on-march-31/

The clause eligible users is another thing that draw my attention to this news. Who are the ineligible users? What guage and standard makes a user of an exchange that was eligible making use of the exchange all the while it was still functional in operation to now become an ineligible users after losing his money to the collapse of the exchange (that wasn't of his making), when he is supposed to be compensated for it?

It is what we have constantly said, not your key not your coins, your eligibility at any shutdown will only be determined by the exchange. Prioritize self custody today.

[Darker45]

There were forms to properly fill out, KYC to successfully pass, deadlines set, classifications or categories where you're assigned under, amounts claimed, schedules, and so on and so forth. These are probably the bases that determine whether or not a former FTX user is eligible for this distribution phase.

This is normal, of course. It's for the distribution to be organized and smooth. It may be inconvenient, slow, frustrating, and so on, but that's the price to pay for trusting a third party to have control over your funds.

[Rikafip]

There were forms to properly fill out, KYC to successfully pass, deadlines set, classifications or categories where you're assigned under, amounts claimed, schedules, and so on and so forth. These are probably the bases that determine whether or not a former FTX user is eligible for this distribution phase.

I know a guy who had money on FTX, but he failed to complete all the necessary steps (iirc, he thought he wouldn't get his money back anyway so he didn't take it seriously), so he will end up getting nothing.

Worst of all, it wasn't a negligible amount either (~$10k).

[KingsDen]

There were forms to properly fill out, KYC to successfully pass, deadlines set, classifications or categories where you're assigned under, amounts claimed, schedules, and so on and so forth. These are probably the bases that determine whether or not a former FTX user is eligible for this distribution phase.

I know a guy who had money on FTX, but he failed to complete all the necessary steps (iirc, he thought he wouldn't get his money back anyway so he didn't take it seriously), so he will end up getting nothing.

Worst of all, it wasn't a negligible amount either (~$10k).

I wouldn't blame him though. I haven't for a long while witnessed a successful recompensation. When I heard about the distribution information, I didn't take it seriously. But if I had $10k at stake, I would do everything I'm asked to do even if it was not going to yield a result.
I feel sorry for him, this would be a double regret scenario for him.

[Darker45]

~snip~

I know a guy who had money on FTX, but he failed to complete all the necessary steps (iirc, he thought he wouldn't get his money back anyway so he didn't take it seriously), so he will end up getting nothing.

Worst of all, it wasn't a negligible amount either (~$10k).

That's a rather big price to pay. He must have a lot of money. If I had that amount, I would have persevered and hope against hope that I'd get it back. Unfortunately, now might be too late for him to try recovering his funds.

But I don't blame him. I myself surrendered trying to claim my funds left on Cryptopia. Wasn't big, but wasn't negligible either. The largest precedent was Mt. Gox and the process was discouraging. I filled out forms and submitted KYC details over and over and over again. At some point, I thought everything would be for naught anyway, so I also gave up.

[Bitcoin_Arena]

The clause eligible users is another thing that draw my attention to this news. Who are the ineligible users? What guage and standard makes a user of an exchange that was eligible making use of the exchange all the while it was still functional in operation to now become an ineligible users after losing his money to the collapse of the exchange (that wasn't of his making), when he is supposed to be compensated for it?

The ineligible users are perhaps those who failed to pass KYC verification. Remember when FTX was still in operation, the KYC verification was not too strict. Just a name, date of birth, address, and photos of national ID or passport. No proof of address or things like source of funds.

But when these guys came in to verify the former users, they applied much stricter means, which implies some of the legitimate former users may still not pass KYC verification despite previously having large sums in the exchange.

[hugeblack]

They can be considered lucky, as in similar cases it took more than 10 years and many did not receive a single cent.

The clause eligible users is another thing that draw my attention to this news. Who are the ineligible users? What guage and standard makes a user of an exchange that was eligible making use of the exchange all the while it was still functional in operation to now become an ineligible users after losing his money to the collapse of the exchange (that wasn't of his making), when he is supposed to be compensated for it?

For individual customers, payment requirements vary. For example, there may be payment restrictions for some countries and separate procedures for others, such as Australia and Europe, in addition to identity verification and proof of funds.

The process will become even more difficult if you cannot remember your username and password.