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.

[rat03gopoh]

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

Not yet
Their luck doesn't seem to end just because creditor funds exit the FTX recovery wallet, as I see recommendations for recovery paths similar to those of Mt. Gox.

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

The problem is, their "trusted partners" can also freeze funds, as recently reported^(*).

I think the FTX refund distribution story will be longer for some creditors. Essentially, it's not a recovery process, just a restitution process to an agent that's more easily controlled by the law.


*) https://bitcointalk.org/index.php?topic=5573473.0

[hugeblack]

Their luck doesn't seem to end just because creditor funds exit the FTX recovery wallet, as I see recommendations for recovery paths similar to those of Mt. Gox.

This is very strange and I see no explanation for it . I hope that these are individual cases, but appealing such rulings can be costly and take years of litigation.

[UmerIdrees]

Their luck doesn't seem to end just because creditor funds exit the FTX recovery wallet, as I see recommendations for recovery paths similar to those of Mt. Gox.

This is very strange and I see no explanation for it . I hope that these are individual cases, but appealing such rulings can be costly and take years of litigation.

I believe that this FTX distribution is all drama and fake. Maybe there are a few nationalities that may get a refund, but the people belonging to the third world were never able to even complete the FTX claim process, so how will they ever get the refunds 

I have told the issues in detail here FTX Customer Claims Portal and unfortunately, there are many people who are affected, and we aren't those lucky ones to get our funds back.

[IjawMan]

~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.

It not be that the guy has a lot of money, if we investigate it could be that the $10,000 it was part of his savings he had at the time. Many of the customers that will be illegible for this distribution may be those that did not trust the ability of the exchange "FTX" that the process will be successful eventually, cause at that point FTX has already destroyed the trust given them initially.

When trust is broken it's usually hard to resuscitate it in an instant, there must be trust issues and rigidity of the whole process for completion of forms filling could also be discouraging for many persons to neglect what has been lost.

[rat03gopoh]

I believe that this FTX distribution is all drama and fake. Maybe there are a few nationalities that may get a refund, but the people belonging to the third world were never able to even complete the FTX claim process, so how will they ever get the refunds 

I have told the issues in detail here FTX Customer Claims Portal and unfortunately, there are many people who are affected, and we aren't those lucky ones to get our funds back.

That's what I thought. This is like a selective refund process, maybe those who can afford a lawyer or any legal assistance. But I could easily be wrong. As I said before, kraken and bitgo also handles distribution to mt.gox creditors which until now has not been completely resolved.

[Z-tight]

I have told the issues in detail here FTX Customer Claims Portal and unfortunately, there are many people who are affected, and we aren't those lucky ones to get our funds back.

I remember your thread from a few years back. It was a frustrating process for you to submit kyc to be eligible to get your funds back, and not just you, it was the same situation for a lot of other people too. It is sad to see that you were unable to get your money back, if i remember correctly, there was even no distribution partner available in your jurisdiction. I believe that says a lot about this ftx claim process and how a lot of people were probably cheated out of their funds.

[Darker45]

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.

It not be that the guy has a lot of money, if we investigate it could be that the $10,000 it was part of his savings he had at the time. Many of the customers that will be illegible for this distribution may be those that did not trust the ability of the exchange "FTX" that the process will be successful eventually, cause at that point FTX has already destroyed the trust given them initially.

When trust is broken it's usually hard to resuscitate it in an instant, there must be trust issues and rigidity of the whole process for completion of forms filling could also be discouraging for many persons to neglect what has been lost.

If it's around $10,000, it's not going to be about trust anymore. It's about a huge amount of money. I'm sure anybody who doesn't have much money won't turn their back on it despite "trust issues and rigidity of the whole process".

I mean, if you're in his position, despite suspicions, doubts, destroyed trust, discouragement, inconvenience, and the like, would you not take the KYC process for the nth time for that $10,000?