FTX begins $1.2B repayments but creditors face massive losses amid crypto market turmoil

Collapsed Crypto Exchange FTX Begins Repaying Billions to Customers

FTX, the once-prominent cryptocurrency exchange, has initiated its first round of repayments to creditors, distributing $1.2 billion to smaller claim holders. According to Decrypt, this marks a significant milestone in the bankruptcy proceedings, which aim to return between $14.5 billion and $16.3 billion to affected customers. The initial payments target claims under $50,000, categorized as "Convenience Class" claims, with funds expected to reach recipients within 1 to 3 business days.

However, not all creditors are satisfied. Julian Grigo from Safe highlighted that most users will recover only a fraction of their original holdings, with reimbursements based on November 2022 asset prices. For instance, Bitcoin claims are calculated at $20,000 per BTC, despite its current value exceeding $95,000. Additionally, FTX's estate has been selling off Solana (SOL) tokens, its largest crypto holding, to manage distributions without destabilizing the market. The next phase of repayments is planned for Q2 2025.

Source: Decrypt (https://decrypt.co/306585/collapsed-crypto-exchange-ftx-begins-repaying-billions)

Exchanges Offer PI Network Airdrop as Mainnet Launch Approaches

As the PI Network prepares for its mainnet launch on February 20, 2025, major exchanges like OKX and Bitget have announced token listings and airdrop campaigns. BeInCrypto reports that Bitget is offering a $60,000 PI airdrop pool, running until March 3, while BitMart is hosting a $3,000 USDT giveaway for 300 users. These initiatives aim to engage the community and reward early adopters.

Despite the excitement, the PI Network's IoU token has seen a price drop of over 50% as exchanges like HTX delist it ahead of the mainnet launch. The project, which boasts over 3.8 million followers on X, has faced delays and scam allegations in the past. Binance is also conducting a community vote to decide on listing the token, with results expected by February 27.

Source: BeInCrypto (https://beincrypto.com/exchanges-launch-pi-network-airdrop/)

A Lingering Question at Coinbase: Who Really Owns the Customers’ Crypto?

The Wall Street Journal highlights a significant accounting change at Coinbase, which has drastically reduced its reported assets and liabilities. As of December 31, 2024, Coinbase's assets dropped from $291 billion to $23 billion, while liabilities fell from $282 billion to $12 billion. This shift raises questions about the ownership of customer-held crypto assets.

The change reflects ongoing debates about whether customer assets should be considered part of the exchange's balance sheet. This issue has broader implications for the crypto industry, especially as regulatory scrutiny intensifies. Coinbase's move underscores the need for clear guidelines on asset ownership and accounting practices in the digital asset space.

Source: The Wall Street Journal (https://www.wsj.com/finance/currencies/coinbase-crypto-ownership-accounting-7c97b26a)

Coinbase Calls on Congress to Bring Clarity to Crypto

Coinbase has urged U.S. lawmakers to establish clear regulations for the cryptocurrency industry. According to PYMNTS.com, the exchange advocates for legislation that distinguishes between securities, commodities, and other token types. Coinbase also supports giving the Commodity Futures Trading Commission (CFTC) authority over the crypto spot market to enhance transparency and protect consumers.

Additionally, the company calls for a framework for stablecoins to ensure they are safe, fully backed, and transparent. This push for regulatory clarity comes as Congress debates various bills, including one from Rep. Maxine Waters that proposes strict requirements for stablecoin issuers. Coinbase's efforts aim to foster innovation while safeguarding investors in the rapidly evolving crypto landscape.

Source: PYMNTS.com (https://www.pymnts.com/cryptocurrency/2025/coinbase-calls-on-congress-to-bring-clarity-to-crypto/)

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