Struggling cryptocurrency platform FTX has outlined a schedule for its $16 billion in debt payments to creditors. Initial repayment, according to experts, is expected to occur by early February as per the agreed Plan and Confirmation Order. Notably, the reorganization plan prioritizes paying smaller creditors first.
FTX Repayments To Start in February
On his recent post on X dated January 12, Sunil Kavuri (an FTX creditor) shared information about repayment arrangements. He disclosed details such as the initial distribution schedule and the timeline for the first repayment. As per the plan, creditors whose claims are less than $50,000 will receive their payments in the first round of repayments. This equates to approximately $1.2 billion, with January 3 being the cut-off date for eligibility.
As a crypto investor, I’ve received notice from FTX about the initial distribution scheduled for January 20th. To be eligible for this distribution, creditors like myself are required to complete pre-distribution requirements, which includes filling out W-8Ben forms. Once my Know Your Customer (KYC) verification is confirmed, I need to submit a tax withholding form within 30 days. It’s crucial to note that if I fail to submit the tax form before the 60-day deadline, I won’t receive any repayments from this distribution.
Sunil Kavuri anticipates that the initial installments for repayment will commence in February. Moreover, it seems probable that these repayments will persist until March 4th.
Investigate the mechanism behind FTX’s proposed payouts and the cryptocurrency platforms planning to disburse funds to their creditors. Concurrently, there have been complaints from creditors regarding an excessive amount of suspicious emails and websites alleging to initiate repayments.
Crypto Community Anticipate Boost in Bullish Crypto Market
Despite allegations of inaccuracies in Backpack’s claims about FTX EU acquisition, the embattled company maintains that all shares of FTX EU are still under the ownership of FTX Europe AG. The U.S. Bankruptcy Court supervising the Chapter 11 proceedings has yet to sanction any transfer.
Enthusiasts in the cryptocurrency market are very optimistic about FTX repayments, which could significantly boost the crypto market. They anticipate that creditors will invest more in the crypto market, leading to a potential surge in Bitcoin and altcoins under the pro-crypto Trump administration.
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2025-01-12 21:01