FTX announced that its bankruptcy plan will officially go into effect as of January 3, 2025, and the process of repaying creditors will begin. In the first phase, payments for claims of $50,000 and below will be completed within 60 days, while payments for larger claims will be made later in the year.
The company has warned users against phishing scams, stressing that claims should only be made through the official FTX website. Under the bankruptcy plan, around 98% of creditors are expected to receive 119% of their claims. However, there has been criticism that refunds are calculated based on the cryptocurrency’s value at the time of FTX’s collapse. For example, the price of Bitcoin has increased by more than 400% since 2022, meaning that creditors’ potential earnings have been significantly reduced.
In its bankruptcy plan, FTX stated that the process is entirely dependent on market conditions and the company’s discretion. It was stated that payments for large claims may be delayed until later dates, while smaller claims are expected to be completed by February or March. Market experts predict that FTX’s refunds could provide significant liquidity to the cryptocurrency market, potentially triggering a bull run.
Additionally, the collapse of FTX resulted in former CEO Sam Bankman-Fried being sentenced to 25 years in prison, but speculation continues about a possible presidential pardon due to Bankman-Fried’s large donations to the Democratic Party during the US presidential election.