The post FTX Repayment Schedule Revealed: $16 Billion Distribution Starts January 2025 appeared on BitcoinEthereumNews.com.

FTX will begin repaying $16 billion to customers and creditors starting January 3, 2025. Creditors are expected to recover up to 119% of their claims. FTX, the cryptocurrency exchange that filed for bankruptcy in November 2022, is planning to start repaying its debt to creditors for $16 billion on January 3rd, 2025. The move marks a breakthrough in one of crypto history’s most devastating financial busts. Approved Repayment Plan The repayment schedule that was approved on 10 October 2024 comes with a clear and definable strategy of how the company shall be making its repayments to creditors. Payment will start in early 2025 for claims that are less than $50,000. Larger claims will follow later in the year. The exchange plans to return 98% of the customers’ losses, with some of the creditors expected to get back as much as 119% of their claimed account value. FTX CEO John J. Ray III stated that he is optimistic about the process, as FTX has been working to restore assets and public trust. He stated that the company is “well-positioned to begin executing the distribution of recoveries.” As previously reported by Crypto News Flash, the creditors have to follow certain procedures to get their distribution. These include accessing the FTX portal, KYC procedures, filing tax documents, and opening accounts with either Kraken or BitGo. Payments will only be made to the registered claim holders as of January 03, 2025. In a post on X, Sunil Kavuri, a prominent advocate for FTX creditors, dismissed the January repayment plans. He pointed out that the current reserve funds are $13 billion and are expected to rise to $14 billion by March. Other revenues, such as lawsuit settlements and venture capital, could add up to $7 billion; however, a $16 billion claim remains unrealistic. FTX Repayments…

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Filed under: News - @ December 31, 2024 3:27 pm