Catenaa, Sunday, January 18m 2025 – FTX, the bankrupt cryptocurrency exchange, has set a deadline of January 20, 2025, for users to meet pre-distribution requirements to receive their long-awaited repayments.
The company, which owes over $1.2 billion to its users, aims to begin distributions in February, pending the completion of the necessary steps.
The repayments will prioritize users owed up to $50,000 worth of digital assets, with 98% of claimants expected to be reimbursed at 119% of the value of their funds at the time of FTX’s bankruptcy.
However, the repayment process has faced criticism due to the use of cryptocurrency prices from November 2022, when Bitcoin’s value was much lower. Since then, Bitcoin has surged over 370%, leading some claimants to argue the compensation is unfair.
Despite this, the repayments are expected to inject significant capital into the crypto market, with analysts predicting Bitcoin’s value could rise above $200,000 as market activity picks up. Crypto firms BitGo and Kraken will assist with the distribution process.
The FTX repayments are seen as a critical step in restoring trust in the cryptocurrency sector. Similar to the aftermath of the Mt. Gox collapse, investors are likely to have varied responses, with some opting to sell for financial security, while others may hold their assets in anticipation of future growth.
