The post FTX’s $1.2B Repayment Starts Soon – Could This Impact Crypto Prices? appeared first on Coinpedia Fintech News
FTX the defunct cryptocurrency exchange, is ready to repay over $1.2 billion to its users. This repayment marks a major step in the process of returning up to $16 billion to creditors, including those who have been unable to access their funds since the platform’s collapse more than two years ago. Repayments are expected to begin after January 20.
Key Details About FTX Repayments
Under the restructuring plan approved in October 2024, FTX plans to repay users owed up to $50,000 in digital assets. These users have until January 20 to complete the necessary steps for the initial distribution.
FTX creditors are required to complete specific pre-distribution steps, including submitting tax forms and finishing KYC verification. Creditors who fail to meet the requirements will automatically be included in future repayment rounds.
However, these repayments are calculated based on crypto prices at the time of FTX’s bankruptcy, which has drawn criticism. For example, the bitcoin price since then has risen over 370% since November 2022, making some creditors question the fairness of this approach.
Impact Of It On Crypto Market
The upcoming repayments are expected to bring significant changes to the crypto market. Over $2.4 billion could flow into the crypto market, as some investors might cash out for financial security, while others may choose to reinvest.
Meanwhile, Anndy Lian, a blockchain expert, compared the situation to the Mt. Gox case. In that instance, many creditors held onto their Bitcoin instead of selling, limiting market volatility. A similar response could happen with FTX repayments, reducing the risk of price swings.
The post FTX’s $1.2B Repayment Starts Soon – Could This Impact Crypto Prices? appeared first on Coinpedia Fintech News
FTX the defunct cryptocurrency exchange, is ready to repay over $1.2 billion to its users. This repayment marks a major step in the process of returning up to $16 billion to creditors, including those who have been unable to access their funds since the platform’s collapse more than two years ago. Repayments are expected to begin after January 20.
Key Details About FTX Repayments
Under the restructuring plan approved in October 2024, FTX plans to repay users owed up to $50,000 in digital assets. These users have until January 20 to complete the necessary steps for the initial distribution.
FTX creditors are required to complete specific pre-distribution steps, including submitting tax forms and finishing KYC verification. Creditors who fail to meet the requirements will automatically be included in future repayment rounds.
However, these repayments are calculated based on crypto prices at the time of FTX’s bankruptcy, which has drawn criticism. For example, the bitcoin price since then has risen over 370% since November 2022, making some creditors question the fairness of this approach.
Impact Of It On Crypto Market
The upcoming repayments are expected to bring significant changes to the crypto market. Over $2.4 billion could flow into the crypto market, as some investors might cash out for financial security, while others may choose to reinvest.
Meanwhile, Anndy Lian, a blockchain expert, compared the situation to the Mt. Gox case. In that instance, many creditors held onto their Bitcoin instead of selling, limiting market volatility. A similar response could happen with FTX repayments, reducing the risk of price swings.
