According to the latest information, some users are reporting that they have received FTX refunds via cryptocurrency exchange Kraken.
FTX announced that they would begin paying back the first group of creditors on February 18, a significant development for the cryptocurrency industry following its sudden crash in November 2022.
Accordingly, FTX’s Bahamas wing will issue the first batch of refunds to users with debts of less than $50,000.
While approximately $1.2 billion is expected to be distributed in the first batch of refunds, Bitget Wallet’s chief operating officer Alvin Kan said that FTX refunds are a positive signal for the recovery of cryptocurrencies.
“A significant portion of the $1.2 billion in refunds could be reinvested in cryptocurrencies, potentially positively impacting market liquidity and prices.
“Refunds may boost investor confidence by showing that the market is recovering after the FTX crash. However, calculating the payments based on the low prices in 2022 may not fully meet investors' expectations and may also deter investors from investing.”
Nexo chief executive Magdalena Hristova said the initial FTX refund was a significant step forward, but the impact of the capital coming into the market would be limited.
*This is not investment advice.
