FTX’s collapse in 2022 rocked the world of cryptocurrency and emerged as one of the largest financial scams in American history. It led to severe financial loss for thousands of investors. Still, some good news for victims: FTX has begun making repayments to creditors. Albeit after the two-year delay, according to some analysts such as Ishan Bhaidani, the delay is in itself a “win.” So why is the delay a positive factor, and how do we benefit from it?
What Caused FTX to Fall?
FTX, a large cryptocurrency exchange, employed customer deposits for investments of a speculative nature via its sister firm, Alameda Research. When the market crashed, FTX was left with insufficients and unable to make withdrawals, so it filed for bankruptcy in November 2022. Individual and institutional investors were affected by the collapse, as well as government intervention from the likes of the U.S. and the Bahamas.
Why Is the Two-Year Delay a ‘Win’?
🚨 Bitcoin Crashes to 4-Month Low Amid Tech Sell-Off & Crypto Jitters
— Moot (@MootNews) March 1, 2025
📉 Bitcoin (-7%) falls to $78,273, set for biggest weekly loss (-16%) since FTX collapse in Nov 2022.
⚠️ Crypto market loses nearly $500B in a week as investor sentiment crumbles.
🛑 What’s Driving the Crash?… pic.twitter.com/bGVb2gr70a
While FTX creditors have been kept waiting over two years for reimbursement, most authorities, such as Bhaidani, regard that as acceptable even, in their view, something to be cheered about. The complexity of doing business across many nations and countries’ systems is highlighted by Bhaidani. “You are dealing with numerous governments and all manner of different enforcement levels,” he breaks down. Due to the enormity of the task at hand, taking two years’ time is actually a pretty tolerable solution.
FTX Repayment Plan: What to Anticipate
FTX initiated its first batch of repayments on February 18, 2025. Its second round will begin on May 30, 2025, with the creditors required to confirm their claims by April 11, 2025. FTX’s recovery plan guarantees 98% of the creditors to get a minimum of 118% of their initial claim in cash, which is a good deal given how bad it seemed following the bankruptcy.
However, investors who acquired FTX claims at a lower rate might have varying results based on the market’s shift.
Investment Opportunities During the Crisis
Bhaidani also mentioned that some investors purchased FTX claims for 25 cents on the dollar, hoping that cryptocurrency prices would increase. For you if you purchased Bitcoin, Ethereum (ETH), or Solana (SOL) at that price point, it’s been a profitable investment. “Purchased Solana? You did very, very well,” Bhaidani said. What this indicates is that despite being in a crisis, there were ways to make money, depending on how one invested.
Will Sam Bankman-Fried Get a Pardon?
Another question on everyone’s lips is whether Sam Bankman-Fried, the former FTX CEO, will get a pardon for his role in the scandal Bhaidani thinks the possibility of a pardon is extremely low—only 2% to 5%. With the magnitude of the fraud, it is unlikely that Bankman-Fried will escape legal repercussions anytime soon.
While the process of repayment for FTX creditors has been slow, it brings hope to those who lost funds in the meltdown. The wait of two years says more about just how difficult the process has been, but that payments have commenced is encouraging. The experience serves to remind investors about the perils of putting their money in cryptocurrency, especially when trading on such unpredictable markets.
As the process of repayment continues, investors may learn valuable things about how to handle crypto investment and remain knowledgeable about market dangers. Monitor how FTX’s recovery progresses—it may provide valuable lessons for your future investments.
