FTX to Start $18 Billion Repayment Process on February 18, 2025
FTX will begin repaying creditors on February 18, 2025, following its collapse in 2022. Key details include:
- Payments for claims under $50,000 expected within three business days.
- Total repayment package amounts to $18 billion, with legal issues causing delays.
- A 9% post-petition interest has been added to creditor claims to address financial discrepancies.
- Smaller account holders will receive 120.5% of their claims; larger claims may yield up to 175%, starting Q2 2025.
- BitGo appointed to oversee fund distributions, with all repayments required within 60 days of the reorganization plan effective January 3, 2025.
Impact on Bitcoin Holders
98% of Bitcoin holders affected by FTX’s $20,000 repayment cap, while BTC value reached $96,500.
Asset Sales for Repayment
FTX has sold 41 million SOL tokens, raising significant funds for repayments:
- Galaxy Digital purchased 25.52 million SOL at $64 per token, achieving a 187% return.
- Pantera and others acquired a total of 13.67 million SOL at $95 per token, yielding a 93% gain.
Sam Bankman-Fried's Legal Issues
Bankman-Fried was convicted of fraud in March 2024 and sentenced to 25 years in prison for misappropriating billions from investors and lenders. The FTX token (FTT) has seen a 5% increase today, trading volume at $28 million, and a 14.40% rise over the past week.