News View Non-AMP

FTX’s $1.2B Crypto Repayments Start Soon, but Here’s Why It’s Unfair

Published by
Mustafa Mulla

After more than two years of uncertainty, FTX, the once-thriving cryptocurrency exchange, is finally ready to repay over $1.2 billion to its users. This marks the first step in its ambitious plan to return up to $16 billion to creditors, some of whom have been locked out of their funds since the platform’s collapse.

But as the repayment process gets underway, questions remain—how will it impact the crypto market? And are these payments fair given the dramatic rise in crypto prices since the bankruptcy?

Keep reading to find out what’s at stake for creditors.

What Creditors Need to Do

As part of the restructuring plan approved in October 2024, FTX will repay users who are owed up to $50,000 in digital assets. Creditors need to complete tasks like submitting tax forms and finishing their Know Your Customer (KYC) verification by January 20 to receive payments in the first round.

Missed the Deadline? You’re Not Left Out

Creditors who miss the January 20 deadline will still be part of future repayment rounds but will not be included in the initial distribution unless they complete the required steps.

The repayment amounts are based on the prices of cryptocurrencies at the time of FTX’s bankruptcy. This approach has drawn criticism, especially because Bitcoin has surged by over 370% since November 2022. Some creditors question whether using those past prices is fair, given how much the value of Bitcoin has changed.

Could FTX Repayments Mirror Mt. Gox’s Impact?

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.

Blockchain expert Anndy Lian has drawn comparisons to the Mt. Gox case, where many creditors held onto their Bitcoin instead of selling, which helped limit market volatility. A similar response from FTX creditors could reduce the risk of price swings, potentially providing more stability to the market.

With billions in motion, the aftermath of FTX’s collapse is far from over, leaving the crypto world on edge for what comes next.

FAQs

When will FTX start repaying its creditors

FTX begins repayments of over $1.2 billion to users starting January 2025, with tasks like KYC verification due by January 20.

How much will FTX repay to users?

FTX plans to repay up to $16 billion to creditors, starting with $1.2 billion, based on cryptocurrency prices at the time of bankruptcy.

Could FTX repayments impact the crypto market?

FTX repayments could inject $2.4 billion into the crypto market, with potential price volatility or stability depending on how creditors respond.

Mustafa Mulla

Mustafa has been writing about Blockchain and crypto since many years. He has previous trading experience and has been working in the Fintech industry since 2017.

Recent Posts

Fartcoin Surges Over 14% After Coinbase Roadmap Surprise-Here’s What’s Next for the Price!

Fartcoin made headlines this week after a sharp 14% rally following its surprise inclusion in…

June 6, 2025

Coinbase Listing Hype Sends Fartcoin Back Into Top 100

Fartcoin is back in the spotlight! The joke-themed token jumped 12% in just one day…

June 6, 2025

Hong Kong’s New Rule Forces Stablecoins to Have Real-World Backing

The Hong Kong government has just approved a set of rules that will make sure…

June 6, 2025

Bitcoin Just Mined Its 900,000th Block – What It Means for Miners and the Next Halving

This is huge news! Bitcoin just crossed a new line in the sand. On Friday,…

June 6, 2025

Singapore Cracks Down: Crypto Firms Must Get Licensed by June 30 or Shut Down

Singapore is taking a firm stand on crypto regulation, with the Monetary Authority of Singapore…

June 6, 2025

Metaplanet Launches $5.4B Bitcoin Equity Raise

Metaplanet has announced a ¥770.9 billion (~$5.4 billion) equity raise focused on Bitcoin by issuing…

June 6, 2025