#FTXrepayment
FTX, the crypto exchange that filed for bankruptcy in November 2022, has begun the process of returning funds to creditors on January 3, 2025. The Chapter 11 reorganization plan, which was approved by the court in October 2024, allows for the distribution of up to $16 billion in recovered assets to creditors.
In an effort to facilitate this distribution, FTX has partnered with BitGo and Kraken. Creditors with claims under $50,000 will receive payment within 60 days of the plan’s effective date, while larger claims are expected to be settled by mid-2025.
Analysis from K33 Research estimates that around $2.4 billion of the returned funds may be reinvested into the crypto market by creditors, which could provide a positive boost to the price of Bitcoin and other digital assets in the fourth quarter of 2024 and beyond.
Additionally, FTX CEO John J. Ray III expressed his belief that the repayment plan will help restore confidence in the crypto industry. The involvement of companies like Kraken and BitGo in handling these payments underscores the growing reliability of the industry.
Overall, this move is seen as a major milestone in the recovery efforts for FTX’s creditors and is expected to have a positive impact on the crypto market as a whole.
