FTX Repayments: Expert Sunil Kauveri looks at initial distribution schedule and expected first repayment date by the debtor as per details.

Beleaguered crypto exchange FTX has further revealed the schedule for $16 billion in creditor repayments. Experts revealed early February as the expected timeline for the first repayment in accordance with the Plan and Confirmation Order. Also, the bankruptcy reorganization plan aimed to disburse repayments for small creditors first.

FTX Repayments To Start in February

FTX creditor Sunil Kavuri in an X post on January 12 revealed details of repayments, including the initial distribution schedule and first repayment. According to the plan, the first round of repayments will happen for creditors with claims below $50,000. This makes it a total of approximately $1.2 billion, with January 3 as the record date.

FTX has requested creditors to complete pre-distribution requirements for the initial payout by January 20. Creditors are advised to submit W-8BEN forms. Once KYC is verified, creditors must submit a tax withholding form within 30 days. It’s important to note that if a creditor fails to submit the tax form within 60 days, they will not receive any repayment.

Sunil Kavuri anticipates that the first round of payouts will begin in February, with repayments likely continuing until March 4.

Review how the FTX claims payout process will function, as well as which crypto exchanges are included in the distribution plan for creditors. In the meantime, creditors have raised concerns about a high volume of phishing emails and fraudulent claim portals purporting to begin repayments.

Crypto Community Anticipate Boost in Bullish Crypto Market

While the FTX Debtor has other issues including inaccuracies in Backpack’s FTX EU acquisition claims. The beleaguered firm said 100% of FTX EU share capital is still owned by FTX Europe AG. The U.S. Bankruptcy Court overseeing the Chapter 11 process has not approved any transfer.

Market participants are extremely bullish on FTX repayments giving a much-needed push to the crypto market. expect creditors to put money back into the crypto market as Bitcoin and altcoins to rally under the pro-crypto Trump administration.

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