FTX’s $1.2B Repayment Starts Soon – Could This Impact Crypto Prices?
FTX The defunct cryptocurrency exchange is ready Repaid more than $1.2 billion to its users. The repayment marks a major step in the process of returning up to $16 billion to creditors, including those who have been unable to access funds since the platform collapsed more than two years ago. Repayments are expected to begin after January 20th.
Key details about FTX repayments
Under the restructuring plan approved in October 2024, FTX plans to repay users up to $50,000 in digital asset arrears. These users have until January 20 to complete the necessary steps for initial distribution.
FTX Creditors There are specific pre-distribution steps that need to be completed, including submitting tax forms and completing KYC verification. Creditors who do not meet the requirements will automatically be included in future repayment rounds.
However, these repayments were calculated based on cryptocurrency prices at the time of FTX’s bankruptcy, which prompted criticism. For example, the price of Bitcoin has increased by more than 370% since November 2022, leading some creditors to question the fairness of this approach.
Its impact on the cryptocurrency market
The upcoming repayments are expected to bring significant changes to the cryptocurrency market. Exceed US$2.4 billion may flow into Enter the cryptocurrency market as some investors may cash out for financial security, while others may choose to reinvest.
Meanwhile, blockchain expert Anndy Lian compared The circumstances of the Mt. Gox case. In this case, many creditors hold Bitcoin rather than sell it, limiting market volatility. FTX repayments may react similarly, reducing the risk of price volatility.
