FTX starts repayments: Creditors breathe a sigh of relief – Bitcoin is declining!

FTX starts repayments: Creditors breathe a sigh of relief – Bitcoin is declining!

The crypto market is slightly weaker this week. Bitcoin, once at an all-time high of $112,000, has fallen to around $104,000. Many altcoins are in a consolidation phase while overall sentiment remains bullish despite the correction. A central topic of current discussions is FTX's repayments, which came into focus after the platform collapsed in November 2022. FTX founder Sam Bankman-Fried, found responsible for misusing customer funds, was sentenced to 25 years in prison in March 2024. The case is considered one of the worst financial frauds in US history.

On May 30, 2025, FTX launched a repayment round of over $5 billion aimed at creditors. The first payouts for smaller claims up to $50,000 were previously made in February 2025, with repayments being above average at 119 percent of the original claim value. These small creditors, referred to as “convenience claims,” experience recoveries that exceed their original claims. The FTX Recovery Trust has set a goal of repaying a total of up to $16.5 billion, which is of great importance to many affected investors.

Repayment details

As of May 30, around $5 billion had been paid out to larger creditors, with particular attention paid to claims over $50,000. The payout affects approximately 11,000 claims totaling approximately $10 billion. Of those claims, about 1,100 are greater than $1 million. The average account size for claims between $1 and $10 million is $3 million, while claims over $10 million average $29 million.

However, some creditors express dissatisfaction because the repayments calculated are based on assets at the time of bankruptcy. Despite the returns, fresh capital could flow into the crypto market, potentially giving investors the opportunity to reinvest their returns into digital assets.

The Sam Bankman-Fried case

Sam Bankman-Fried's story stands in stark contrast to current repayment efforts. The former crypto hero was hailed as an “effective altruist” who wanted to use his over $11 billion fortune for social projects. Born on the Stanford campus in 1992 and with a physics degree from MIT, Bankman-Fried began his career as a crypto trader and quickly realized profits from price differences between Japan and the US. In 2019, he founded FTX, which quickly grew to become one of the largest crypto exchanges in the United States.

However, FTX collapsed on November 9, 2022 after it was revealed that $7 billion was missing. Bankman-Fried is accused of embezzling customer funds and committing accounting fraud. At his trial in New York, which began on October 3, 2023, he could theoretically face a prison sentence of up to 115 years. While he has pleaded not guilty, several former employees, including Caroline Ellison, have pleaded guilty and are preparing to testify against him.

Amid these dramatic developments, the crypto industry is increasingly coming to the fore as investors turn to new technologies. The use of artificial intelligence in market analysis is becoming increasingly important, and projects like MIND of Pepe are presenting an innovative AI trading framework. These developments show that the focus in the industry is shifting to projects with real application benefits.

Overall, the situation in the crypto market remains tense, while FTX repayments could trigger a possible wave of new liquidity.