Over the weekend, news that FTX payments had started, especially on the X platform, and claims that the $16 billion cash flow would create an increase in the cryptocurrency market, had created excitement among investors. However, the real start of these payments is expected to take place in March 2025. The FTX exchange, which attracted worldwide attention with developments regarding cryptocurrencies on its balance sheet during the bankruptcy process in 2022, is finally starting to make payments that have been expected for years. However, there are also signs that the expectations of the crypto world will not be met during this process.
Is the January 3 and $16 Billion Claim True?
Over the weekend, the claims on the X platform and other social media platforms that “$16 billion in payments are starting on FTX” do not reflect the truth. The crypto community had great expectations, thinking that a large portion of these payments would be transferred to crypto markets. However, FTX’s official statements show that there is no payment plan until March 2025. Although the “reorganization” plan will start in January, payments will be made 60 days later at the earliest.
Sunil Kavuri, the lawyer for the largest creditor group in FTX, stated on the X platform that payments will not start in January and that the claims of a $16 billion payment are not true. FTX's bankruptcy administration had previously announced that creditors under $50,000 would be given priority.
FTX has made agreements with BitGo and Kraken exchanges to make payments and losses not with cryptocurrency but with cash obtained during the bankruptcy process. If we remember that Bitcoin was trading around $15,000 and Ethereum was trading around $1,200 during the period when FTX went bankrupt, this decision led to criticism among creditors. However, the head of the bankruptcy administration, John Ray, stated that they did not have enough cryptocurrency to fully cover the losses and that a non-cash payment was not possible.
Crypto research firm K33 Research conducted a significant analysis after FTX’s repayment plan was approved by the court in October. The firm estimated that a total of $1.2 billion would be paid to creditors with debts under $50,000. This payment would be made over time.
It is stated that FTX's total receivables are around $16 billion, but $4 billion of these were purchased by credit funds. This part is not expected to be converted to crypto. It is also stated that one-third of the receivables belong to individuals and institutions in countries subject to Western sanctions. K33 analysts think that this group will not be paid (about $5 billion). The remaining $8 billion will be distributed piecemeal, and about $2.4 billion of this amount is expected to be converted to cryptocurrencies.