The cryptocurrency industry witnessed a major shake-up back in 2022. Prominent cryptocurrency exchange FTX collapsed and caused chaos in the market. While the team behind the firm is currently facing legal troubles, FTX investors wanted their funds back. After making the victims of the collapse wait for a while, the exchange finally began its first wave of repayments. But how much was actually returned to these users?
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A Look Into FTX Repayments
According to recent data, a total of $800 million was returned to investors. This was sent across a staggering 162,000 accounts. Cryptocurrency values from November 2022, when Bitcoin was worth about $20,000, are used to compute repayments. Many creditors claim that the reimbursement does not represent the current market worth of their goods. This has further frustrated these investors. For context, Bitcoin is currently trading at a high of $96,271.67. Bitcoin has increased by nearly 390% since then.
Even so, FTX’s distribution may have a significant effect on market liquidity. Several experts believe that part of the money that is reimbursed would go back into cryptocurrency investments.
It should be noted that the firm started with a small number of people. Customers in the convenience class with claims of up to $50,000 were reportedly the target of these initial repayments. As the exchange strives to meet its responsibilities to creditors, the next planned disbursement is due on April 11. The plan calls for 98% of FTX creditors to receive at least 118% of the value of their claims in cash. This choice has drawn criticism since it failed to refund creditors in cryptocurrency at the value of their claims at the time of the 2022 bankruptcy filing.
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Users Confirm On Reddit
Following this news, several users came forward to confirm that they received their repayment. In addition, a few others also revealed that they converted their FTX repayment into Bitcoin. However, they remained vigilant about using a centralized exchange.
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