- FTX refunds have started but are being blocked in some regions.
- A recent survey shows most creditors plan to reinvest recovered funds.
FTX has officially begun chipping away at the massive task of reimbursing creditors after its high-profile collapse at the end of 2022.
On February 18, the now-defunct crypto exchange began its first round of repayments, targeting those with smaller claims.
Some creditors have expressed disappointment that FTX’s repayments are calculated using November 2022 asset prices, when Bitcoin traded between $16,000 and $21,000.
Claims up to $50,000 are being processed first and the exchange is tacking on a 9% annual interest boost.
FTX creditor and self-proclaimed activist Sunil Kavuri has also drawn attention to another major snag — refunds for certain jurisdictions remain off the table.
He pointed out that creditors in countries such as Russia, China, Egypt, Nigeria, and Ukraine are currently ineligible for repayment, but that the exchange is “reviewing options.”
A recent survey of more than 1,000 purported FTX creditors shows that nearly 80% plan to reinvest their recovered funds, with 62% considering Solana as their primary choice.
Many respondents are also considering reallocating funds into memecoins and AI-driven crypto projects.
Meanwhile, former CEO Sam Bankman-Fried, now serving a 25-year prison sentence, recently hinted at political factors influencing his prosecution during a prison interview.
His family is also actively pursuing clemency, with reports indicating that his parents are seeking a pardon from former President Donald Trump.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.
