FTX, the crypto exchange that collapsed in late 2022, is now taking steps to repay affected customers. This marks a significant moment for investors who feared they would never recover their losses. On Tuesday, the FTX bankruptcy estate announced an initial distribution of $1.2 billion to customers who had claims of less than $50,000.
This payment is the first part of a lengthy process. The full repayment plan could eventually return a substantial portion of the funds to investors, though they will only recover a fraction of what was lost.
A Long Road to Repayment
At the time of FTX’s collapse, Bitcoin was valued at $17,000. Now, the cryptocurrency is trading at $96,000, an increase of 82%. Despite this rise in value, many customers will still receive only a small portion of their lost crypto holdings.
For some affected individuals, the initial repayment has been a welcome relief. Sunil Kavuri, an FTX creditor who lost $2 million in the collapse, has not yet received his repayment. However, he celebrated the announcement as a key moment in the years-long battle for compensation.
“It has been a long and difficult 2.5 years with suicides, depression, divorces… I am grateful and it has been a privilege to fight and represent FTX customers,” Kavuri shared on X.
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