#FTXrepayment FTX, the cryptocurrency exchange that collapsed in 2022, has begun repaying its creditors. Here's a summary of the situation:

* Repayments have started: FTX began distributing repayments to creditors in February 2025. The initial phase focuses on smaller claims, with the goal of repaying all claims under $50,000 in full, plus interest.

* Controversy over valuation: The repayments are based on the value of cryptocurrencies at the time of FTX's bankruptcy in November 2022. This means that creditors who held assets like Bitcoin or Solana, which have significantly increased in value since then, will receive less than their holdings are currently worth. This has led to criticism from some creditors.

* Impact on the crypto market: The repayment process is significant for the crypto industry. The initial $1.2 billion payout could potentially boost market liquidity, though it's unclear how much of that will be reinvested in cryptocurrencies. The situation is also being watched as a test of confidence in the market following the FTX collapse.

Key points to remember:

* FTX's collapse was a major event in the crypto world, highlighting the risks associated with centralized exchanges.

* The repayment process is complex and still ongoing. Larger creditors are waiting for updates on their claims.

* The controversy over valuation underscores the challenges of dealing with assets that fluctuate significantly in price.