Kraken Offers $50K Fee-Free Trading Incentive to FTX Victims as Part of Fund Distribution Effort

In an effort to support victims of the FTX collapse, cryptocurrency exchange Kraken is offering a generous incentive to those affected by the exchange's downfall. Kraken announced on January 9, 2025, that it would provide up to $50,000 in fee-free crypto trading credits to former FTX clients who choose to use Kraken for their recovery payouts.

This move comes as part of Kraken’s involvement in the distribution of funds following FTX's bankruptcy in November 2022. After the massive exchange's fall, which left hundreds of thousands of investors with billions of dollars in lost funds, Kraken is working alongside other firms, including BitGo, to help distribute the recovery funds to FTX’s former customers.

$50K in Fee-Free Trading

FTX clients who elect to receive their payouts through Kraken will be able to trade up to $50,000 in crypto on Kraken Pro without incurring any trading fees. This fee-free incentive is aimed at helping investors recover some of their losses by giving them the ability to trade without the usual transaction costs.

In addition to the $50,000 fee-free trading, Kraken will also offer up to $105 in additional trading fee credits. These credits will be added to users' accounts after their FTX recovery funds are received, based on the amount of funds they are entitled to receive. This added benefit aims to make the transition for FTX users as smooth and cost-effective as possible as they re-enter the crypto market.

Kraken and BitGo’s Role in Fund Distribution

Kraken’s involvement in the recovery process comes as FTX works with several companies, including Kraken and BitGo, to facilitate the distribution of recovery funds. FTX, which once boasted a $32 billion valuation, filed for bankruptcy in November 2022 amid widespread allegations of fraud and mismanagement involving both the exchange and its sister company, Alameda Research.

As part of its ongoing efforts to reimburse affected users, FTX has outlined a distribution plan, with the first round of payouts expected to begin within 60 days of the plan’s effective date. Additional dates for subsequent claims will be announced at a later time. However, FTX has made it clear that users must complete necessary steps, including Know Your Customer (KYC) checks, in order to begin receiving their funds.

Rebuilding After the Collapse

The FTX collapse was one of the most high-profile failures in the crypto industry, with founder Sam Bankman-Fried facing accusations of fraud and stealing user funds. Bankman-Fried was sentenced to 25 years in prison for his role in the scandal, but for many affected users, the loss of funds remains a significant blow.

Kraken’s initiative to offer fee-free trading credits is an attempt to help these victims regain some confidence and potentially rebuild their portfolios. By offering this substantial incentive, Kraken is positioning itself as a key player in the recovery process, providing much-needed support to individuals left in the wake of FTX’s downfall.

Conclusion

Kraken's $50,000 fee-free trading offer is a timely and beneficial initiative for former FTX clients who are looking to recover after the collapse of the exchange. With the first payouts expected within two months and Kraken’s assistance in distributing funds, many FTX victims now have an opportunity to re-enter the crypto market with reduced trading costs. As the recovery process unfolds, Kraken's efforts may help rebuild trust among investors and support the broader industry’s healing process.