The post FTX Begins Creditor Repayments Amid Controversy Over Price Lock and Token Releases appeared on BitcoinEthereumNews.com.

On February 18, 2025, the once-mighty cryptocurrency exchange FTX, which collapsed in late 2022, began repayment to its creditors. This marks a significant turn of events in the infamous bankruptcy of the exchange. The initial payout to these creditors will target smaller claims, with amounts under $50,000, and issue a total of $1.2 billion in the first round of repayments. However, the plan has drawn significant ire and pushback from the creditors, particularly holders of Bitcoin and Solana, because FTX has decided to use the value of their assets from November 2022 to determine how much they are owed. The creditors, in turn, have quite rightly pointed out that none of them had the choice to do anything except go along with the bankruptcy plan and that they are now being repaid with less of their original assets than what they are worth today. FTX’s repayment plan allows the exchange to “lock in” repayment values based on the market prices of assets from November 2022—the month before FTX declared bankruptcy. This method of valuing assets aims to provide some stability in an otherwise volatile environment. Yet it has left many creditors feeling shortchanged, especially in light of the fact that some of the same assets have dramatically increased in price since then. This decision hits Bitcoin holders hardest. As of the time of writing, Bitcoin trades at $97,988—a stark contrast to the $20,000 baseline that FTX is using for its payouts. If you’re a creditor who held Bitcoin at the time of collapse and you’re expecting a sizable return on your investment, think again. The FTX handlers seem to think that a good rule of thumb is to pay creditors with assets that have appreciated in value at the prices those assets commanded at the time of the bankruptcy. In…

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Filed under: News - @ February 19, 2025 7:26 am