FTX to begin distributing $1.2B to creditors after Trump inauguration
FTX plans to distribute over $1.2 billion in repayments to users affected by its bankruptcy, starting with those owed up to $50,000. Users must meet repayment requirements by January 20, 2024. Repayments are expected to begin after this date, coinciding with potential regulatory changes in the U.S. regarding cryptocurrency. The restructuring plan allows 98% of users to receive 119% of their declared funds, but some creditors criticize the repayment model based on cryptocurrency prices at the time of bankruptcy. Market volatility is anticipated as repayments could lead to mixed investor reactions, with some selling for financial security and others holding for future growth. Crypto firms BitGo and Kraken will assist in the distribution process, which could total around $16 billion if all claims are filed.
