The post FTX to start distributing $1.2B to creditors after Trump inauguration appeared on BitcoinEthereumNews.com.

The industry continues to deal with the collapse of Sam Bankman-Fried’s FTX exchange. Hopefully, the long wait for FTX’s former crypto exchange users will soon come to an end. After two years of being unable to access their funds, the failed exchange is preparing to distribute more than $1.2 billion in repayments. According to Sunil, an FTX creditor who is a member of the FTX Customer Ad-Hoc Committee, the largest group of over 1,500 FTX creditors, says that the crypto exchange is expected to commence repaying claims of up to $50,000 after January 20. FTX repayments Initial Distribution Schedule Claims < $50k = $1.2bn Jan 20th: FTX has given until 20th Jan to fulfil pre distribution requirements for initial distribution Repayments likely won’t start before then Feb 25: Likely (up to 4th Mar) — Sunil (FTX Creditor Champion) (@sunil_trades) January 12, 2025 Exchange users who are owed up to $50,000 in digital assets have until January 20 to satisfy their repayment obligations.  Sunil wrote, “Jan 20th: FTX has given until 20th Jan to fulfill pre-distribution requirements for initial distribution. Repayments likely won’t start before then.” Excerpts from FTX creditors’ repayment plan. Source: X Notably, the repayment model repays claimants based on crypto prices at the time of bankruptcy. Creditors have criticized the move, especially because many token prices have gone up exponentially since. For instance, Bitcoin has surged by over 370% since November 2022. FTX repayment effects on the crypto industry  The crypto industry is already excited about US President-elect Donald Trump’s inauguration on January 20. This has prompted anticipation of increased regulatory clarity in the crypto sector and the potential acceptance of the Bitcoin Act. The legislation suggests the establishment of a Bitcoin reserve in the United States, the world’s largest economy. Certain industry observers believe that January 20…

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Filed under: News - @ January 13, 2025 3:28 pm