crypto compensation Archives - Coin Engineer https://coinengineer.net/blog/tag/crypto-compensation/ Btc, Coins, Pre-Sale, DeFi, NFT Tue, 21 Oct 2025 10:03:40 +0000 en-US hourly 1 https://wordpress.org/?v=6.9.4 https://coinengineer.net/blog/wp-content/uploads/2024/04/cropped-Coin-Engineer-Logo-Favicon-2-32x32.png crypto compensation Archives - Coin Engineer https://coinengineer.net/blog/tag/crypto-compensation/ 32 32 Backpack Highlights Its Flash Crash Compensation Plan! https://coinengineer.net/blog/backpack-flash-crash-compensation/ https://coinengineer.net/blog/backpack-flash-crash-compensation/#respond Tue, 21 Oct 2025 11:30:02 +0000 https://coinengineer.net/blog/?p=54728 Backpack successfully addressed the October 11 flash crash, ensuring all cases were verified and resolved. The company confirmed no socialized losses or clawbacks occurred, and its risk engine remained stable under pressure. Throughout the incident, the system operated normally, securing user funds. Flash Crash Incident and Response On October 11, the crypto market experienced a

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]]> Backpack successfully addressed the October 11 flash crash, ensuring all cases were verified and resolved. The company confirmed no socialized losses or clawbacks occurred, and its risk engine remained stable under pressure. Throughout the incident, the system operated normally, securing user funds.

Flash Crash Incident and Response

On October 11, the crypto market experienced a sudden flash crash. Backpack’s risk management system reacted effectively, stabilizing spot and futures trading accounts and preventing any socialized loss. This event highlighted the company’s strong crypto risk management capabilities.

Immediately after the crash, Backpack reviewed all affected accounts and verified that no irregularities occurred, demonstrating its commitment to user fund protection and system reliability.

Compensation Plan and Coverage

Backpack introduced a transparent compensation plan for affected users:

  • Spot-futures arbitrage accounts with under 5x leverage: 100% subsidy

  • Accounts with over 5x leverage: Partial subsidy

  • BTC lending positions affected by Auto-Deleveraging: Full subsidy

  • All liquidation fees: 50% refunded

The plan ensures maximum user fund protection and mitigates potential losses. Armani Ferrante, Founder & CEO of Backpack, stated:


“Our compensation plan guarantees no socialized losses or clawbacks. Our risk engine held firm during market volatility.”

User Security and System Stability

Backpack’s effective response received positive community feedback. Users praised the company’s dedication to fund security and crisis management. During the flash crash, the system maintained normal operations, confirming that user assets remained safe.

This development showcases Backpack’s system resilience, user protection, and readiness for market volatility. Furthermore, the compensation plan reinforces regulatory confidence and strengthens investor trust.

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]]> https://coinengineer.net/blog/backpack-flash-crash-compensation/feed/ 0 FTX to Distribute Over $5 Billion Starting May 30 https://coinengineer.net/blog/ftx-to-distribute-over-5-billion-starting-may-30/ https://coinengineer.net/blog/ftx-to-distribute-over-5-billion-starting-may-30/#respond Fri, 16 May 2025 07:30:45 +0000 https://coinengineer.net/blog/?p=42495 More than two and a half years after its collapse, FTX is moving forward with its next phase of repayments. The FTX Recovery Trust announced it will begin disbursing over $5 billion starting May 30, with transfers expected to be completed within 1 to 3 business days through BitGo and Kraken. Second Wave of Repayments

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]]> More than two and a half years after its collapse, FTX is moving forward with its next phase of repayments. The FTX Recovery Trust announced it will begin disbursing over $5 billion starting May 30, with transfers expected to be completed within 1 to 3 business days through BitGo and Kraken.

Second Wave of Repayments Underway

Not all FTX users will receive funds in this round. According to the exchange’s reorganization plan, five distinct “convenience classes” will receive between 54% and 120% of their eligible claims. If all claims are valid, total repayments could reach $16 billion.

FTX

Controversy Over Valuation Dates

FTX made its first batch of repayments on February 18, totaling about $1.2 billion. However, many users have criticized the repayment calculations, which are based on crypto prices at the time of bankruptcy. Since then, Bitcoin has surged more than 400%, from $20,000 to over $100,000.

You Might Be Interested In: Elon Musk Talks About the Name of a New Memecoin!

Still, the plan suggests 98% of creditors will receive at least 118% of their claim value in cash.

Legal Chapter Nears Conclusion

The repayments come as legal proceedings around Sam Bankman-Fried and his associates reach their end. SBF received 25 years in prison, while other executives including Caroline Ellison, Ryan Salame, Nishad Singh, and Gary Wang were also sentenced. Salame’s wife, Michelle Bond, faces separate charges.

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