How Will the FTX Refund Process Work?

The FTX Recovery Trust, which is overseeing FTX’s bankruptcy process, has divided creditors into different classes and set payment rates:

• Class 5A (International Customers): They will receive 72% of their claims.
• Class 5B (U.S. Customers): They will receive 54% of their claims.
• Class 6 (Unsecured Creditors): They will receive 61% of their claims.
• Class 7 (Creditors under $50,000): They will receive 120% of their claims.

These payment rates vary depending on the status of the creditors’ claims and their classification.

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Which Institutions Will Be the Distribution Service Providers?

Creditors will be able to choose either BitGo or Kraken to receive their payments. Both platforms offer stablecoin and fiat withdrawals:

• BitGo: Offers services such as digital asset and stablecoin purchases, USD withdrawals via ACH (US only) or bank transfers, and transfers of digital assets to personal wallets.
• Kraken: Offers services such as digital asset and stablecoin purchases, fiat withdrawals via SWIFT, SEPA, FedWire and ACH, and transfers of digital assets to personal wallets.

Details such as transaction fees and minimum withdrawal amounts on both platforms may vary depending on the user’s choice.

How Will This Distribution Affect the Market?

This $5 billion stablecoin distribution by FTX could lead to a significant increase in liquidity in the cryptocurrency market. Analysts state that there is a high probability that creditors will reinvest the funds they receive into crypto assets. This situation may trigger price increases, especially in Bitcoin and altcoins.
It is predicted that Bitcoin in particular may reach new heights with this new liquidity flow. This development, which occurred after the bankruptcy process of FTX, creates a positive atmosphere in the cryptocurrency market.

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