FTX Begins $1.2 Billion Repayment to Creditors Today
The first round of repayments to FTX creditors begins today, focusing on users with claims under $50,000. The Bahamian arm of FTX will disburse an estimated $1.2 billion.
- Payments at 3:00 PM UTC
- 28.75% of recipients didn’t complete KYC verification
- 33.33% are claim buyers likely not reinvesting in crypto
- Approximately $400 million for original holders
While the repayment signals a recovery effort after FTX's $9 billion collapse, it is based on cryptocurrency prices at the time of bankruptcy in November 2022, when Bitcoin was valued around $20,000. Since then, Bitcoin has increased over 390%, leading some creditors to feel undervalued.
Only creditors with claims below $50,000 are reimbursed in this phase, leaving many waiting for future payouts. The overall impact on the cryptocurrency market remains uncertain, with expectations that many recipients may prefer safer investments.
Potential Market Impact of Payout
According to Bitget Wallet’s COO, the payout could positively influence the crypto market. He noted that a portion might be reinvested, affecting liquidity and prices.
- Traders speculate funds may go toward debt repayments or liquidity needs
- Meme coins and Solana show signs of fatigue
- Ethereum remains stagnant
- Bitcoin expected to benefit the most from redistributed capital