US Customers Almost Fully Compensated

US customers receiving payments through the FTX US platform will get 40% of their claims in this round. Combined with previous payouts, the total repayment rate reaches 95%. This shows that users in the US have nearly fully recovered their losses.

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International users on FTX.com will receive an additional 6% distribution in this round. This brings the total repayment rate for global creditors to 78%. Payments will be made through BitGo, Kraken, and Payoneer. Claimants must have previously completed identity verification and tax forms.

Payouts May Return to Crypto

Some creditors will receive part of their cash payments in stablecoins. This makes it easier for them to reinvest in the crypto market. However, some affected users exit the crypto market entirely after their losses.

FTX bankruptcy management blocked crypto distributions, so creditors took cash payments instead. Had they received crypto, they could have earned significant profits on tokens like Solana. For example, SOL, in which FTX heavily invested, traded between 10–20 dollars during the bankruptcy period; today, it trades above 200 dollars.

FTX Bankruptcy Had a Deep Impact on the Crypto Market

FTX shook the crypto market with its major bankruptcy in November 2022, and Bitcoin’s price fell below 15,000 dollars in December 2022. Today’s payout round represents a critical step in compensating affected investors for their losses.

The post FTX Launches Third 1.6 Billion Dollar Payout Round appeared first on Coin Engineer.

According to a report based on an anonymous source, the crypto exchange founded in 2011 hoped to launch the service next year.

The report also highlighted that Kraken Securities, a new division, will manage the service, facilitating trading in both the USA and the UK.

The source stated that Kraken has the necessary authorization in the United Kingdom and has applied to the Financial Industry Regulatory Authority in the USA for a broker-dealer license.

This move, which will allow Kraken’s users to trade both traditional shares and crypto, will make a big noise in the recently well-known Robinhood exchange.

This feature, as is well known, also allowed the customers of FTX.US to trade shares a few months before it crashed.

A spokesperson for Kraken said about the report: “Although we cannot comment on rumors or speculations, we aim to expand and enhance our offering to ensure that our customers continue to have safe and uninterrupted access to the entire Kraken package.”

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FTX 2.0 Not Good

Last month, Kraken’s founding partner Powel drew a lot of attention with a statement.

Kraken’s founding partner questioned the applicability of Ftx 2.0. He also expresses his concerns about the recently bankrupted crypto exchange. In a tweet, Powell said “FTX 2.0 would have been worse than starting from scratch. No team, no technology, no license, no banking, tainted brand.”

“The trustee should auction off the domain name and trademark to the highest bidder. Anything beyond that is a fantasy attack to collect a fee for creditors.” he explained.

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