The history of the cryptocurrency market has seen many high-profile scandals, but the collapse of FTX remains one of the most shocking events. The major exchange, founded by Sam Bankman-Fried (SBF), once held a leading position but ended up bankrupt due to fraudulent management practices. More than a year after its downfall, the company has begun the process of returning funds to affected customers. How will this impact the market, and what lessons can be learned from this story?


 

FTX’s Rise and Fall

FTX was founded in 2019 and quickly gained popularity by offering innovative financial products and low fees. Its founder, Sam Bankman-Fried, became a prominent figure in the crypto space, presenting himself as a brilliant trader and philanthropist. His company sponsored sports teams, launched charitable programs, and received backing from top venture capital firms.

However, in November 2022, the world discovered financial manipulations within FTX. It turned out that the exchange had been using customer funds to finance its subsidiary, Alameda Research. When this information surfaced, it led to a massive withdrawal of funds, a collapse in liquidity, and the platform’s bankruptcy. Clients lost billions of dollars, and in 2023, Bankman-Fried was found guilty of fraud.

The Start of Initial Fund Returns

On February 25, 2025, FTX announced the beginning of payments to affected users. According to bankruptcy administrators, the company managed to recover some assets, including the sale of remaining cryptocurrency reserves and the liquidation of associated holdings.

The payouts are being conducted in stages, with priority given to major institutional investors and first-tier creditors. According to current estimates, users can expect to recover between 30% and 50% of their funds, depending on the structure of their deposits at the time of bankruptcy.

How Will This Impact the Market?

The return of funds to FTX clients will inevitably affect the cryptocurrency market. Here are the key possible outcomes:

1. Increased Liquidity. Some investors who receive their money may reinvest it into cryptocurrency assets, creating positive market pressure.
 

2. Sell-offs by Creditors. Many users who receive compensation may choose to convert assets into fiat currency, potentially causing a short-term drop in major cryptocurrency prices.
 

3. Strengthened Regulatory Confidence. This case has set a precedent, highlighting the importance of crypto market regulation. Investors are likely to be more cautious about centralized exchanges, while regulators may tighten oversight of the industry.
 

4. Reduced Volatility. The market has already factored in FTX’s bankruptcy, and compensation payouts reduce uncertainty, potentially leading to lower price fluctuations.

Conclusion: Lessons from the FTX Story

The FTX saga serves as a reminder of the risks associated with storing funds on centralized exchanges. Investors should:

· Diversify their assets and avoid keeping all their funds on a single platform.
 

· Use cold wallets for long-term storage.
 

· Check the financial transparency of companies they engage with.
 

Despite the turmoil, the cryptocurrency market continues to evolve. The start of FTX fund returns is an important step toward restoring trust but also a reminder of the need for a more cautious approach to investments. Time will tell whether the crypto industry has truly learned from this major collapse.