- Customers affected by FTX’s collapse may finally receive some relief as the first round of payouts is scheduled for February 18
- Well-known crypto influencer “Daan Crypto” shared that Kraken will distribute FTX funds to eligible customers by next week
- FTX’s bankruptcy in November 2022 exposed significant financial mismanagement, leading to CEO Sam Bankman-Fried facing federal charges
After nearly 3 years since the emblematic cryptocurrency exchange FTX went down, the customers who had their funds misused may finally be getting some relief.
The first round of payouts is scheduled for February 18. Customers who followed the steps to reclaim their funds will be eligible for the reimbursement, marking the end of a long long-standing period of uncertainty and frustration for many.
Well-known crypto influencer “Daan Crypto” revealed on X that the crypto exchange Kraken notified the investor, claiming that he can expect a return of his FTX funds as early as next week.
FTX filed for bankruptcy in November 2022, after an unexpected surge in withdrawals exposed a significant deficit and misallocation of user funds. The meltdown started after FTX’s sister-company Alameda Research was found to hold a substantial amount of FTT—opening speculations for market manipulation, conflict of interests, and the underlying vulnerability of FTX’s treasury.
The collapse is arguably the most significant development of the crypto industry in the decade. With the company’s CEO Sam Bankman-Fried facing federal charges for fraud, the backlash signaled the alert for governments all across the world to weigh in more on crypto regulation.
The cryptocurrency market would only recover from this more than significant hit over a year later. Sam Bankman-Fried was charged with fraud, money laundering, and conspiracy to commit fraud, leading to his eventual conviction and lengthy prison sentence.
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