U.S. DOJ Investigating Crypto Payout Reforms for Victims, Aiming to Reflect Future Market Value

Many cryptocurrency investors have voiced frustration over the current system for recovering funds after platform failures like FTX and Celsius. Victims often receive their compensation in fiat currency using 2022 market prices despite significant price increases since then. While Bitcoin was around $17,000 during FTX’s collapse in late 2022, by early 2025 it soared above $100,000. Yet, most claimants received only compensation based on the significantly lower values from that time. This gap between losses and payout resulted in widespread outrage. The Department of Justice (DOJ) is investigating potential reforms to ensure victims receive the full benefit of any future market gains. To address this, two DOJ teams – Office of Legal Policy and Office of Legislative Affairs – were tasked with reviewing existing regulations and recommending appropriate legal and regulatory adjustments.