FTX Repayments Begin: What It Means for Bitcoin and Ethereum Holders

FTX is set to start repaying its Bahamas-based creditors on February 18, 2025, marking a major development since its 2022 collapse. Ethereum holders will receive $2,500 per ETH, while Bitcoin claims are capped at $20,000, both based on November 2022 prices. 

This has sparked investor frustrations, especially among Bitcoin investors, as BTC now trades near $97,988, creating a massive gap between the current market value and the repayment amount. Meanwhile, Ethereum’s current price of $2,698 shows a smaller difference, easing the blow for ETH holders.

Analyst Reaction: More Than Meets the Eye

Crypto analyst @Ren_gmi highlighted that FTX aims to return between $14.7 billion and $16.5 billion, potentially paying creditors over 118% of their original account values from November 2022. However, despite this large amount, less than $3B is expected to return to the crypto market. After FTX’s collapse, bankruptcy claims were initially sold for as little as 5 cents on the dollar, but as more assets were recovered, including gains from FTX’s VC investments like Anthropic, Sui, and the SOL rally, the value of these claims surged. Currently, claims are trading above their original November 2022 value, although crypto holders may still face losses in terms of actual coins.

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While there is a massive fear of liquidity rising and fewer payout talks, PlanB’s in his recent poll asked his followers if they would keep the cash or buy Bitcoin with the repayment. The results showed a strong preference for Bitcoin, with over 70% of respondents choosing to reinvest in BTC, reflecting the community’s confidence in Bitcoin’s long-term potential despite short-term market fluctuations. 

Bitcoin vs. Ethereum: Who Gets the Better Deal?

For Bitcoin holders, the repayment cap feels like a hard hit, given BTC’s explosive growth since 2022. On the other hand, Ethereum holders face a milder impact since the price difference is minimal. This disparity has fueled debates on X, with users arguing that repayments should reflect current market values. Despite the controversy, FTX’s repayment process is a critical step in closing the chapter on one of crypto’s biggest collapses, though it leaves many creditors questioning the fairness of the structure.