Key Notes
- Claims under $50,000 will receive 120.5% returns, while larger claims may see up to 175% compensation starting Q2 2025.
- SOL token sales through three auctions generate significant funds, with Galaxy Digital leading purchases at 64% profit margins.
- Bitcoin holders face setbacks with $20,000 cap despite BTC's rise to $96,500, affecting 98% of platform's BTC creditors.
FTX is set to begin repaying its creditors on February 18, 2025, marking a major step in the long recovery process following its 2022 collapse. Wallets with claims under $50,000 are expected to receive payments within three business days. The overall repayment package stands at a staggering $18 billion, but legal hurdles have delayed distribution.
🚨BREAKING:
— CryptoGoos (@crypto_goos) February 17, 2025
$18 BILLION FTX REPAYMENTS START TOMMOROW.
Most of this money will flow into Altcoins.
You're seriously not bullish enough! pic.twitter.com/CCTKtDkNjv
Bankruptcy proceedings have faced obstacles, especially due to the rise in crypto asset values. To counteract financial discrepancies caused by delays, a 9% post-petition interest has been added to creditor claims. This aims to bridge the financial gap from the time of FTX’s downfall to the repayment period.
Louis Origny, co-founder of FTXcreditor.com, shared insights with journalist Tiffany Fong. According to him, smaller account holders will receive 120.5% of their claims back on February 18. Those with claims exceeding $50,000 may receive an even higher return – potentially up to 175% – but their repayments are scheduled to begin in Q2 2025.
FTX will begin distributing payouts on February 18 @LouisOrigny co-founder of @ftxcreditor_com discusses Sam Bankman-Fried's appeal. pic.twitter.com/qNHzQ2PkVJ
— Tiffany Fong (@TiffanyFong_) February 7, 2025
Crypto custodian BitGo has been assigned to oversee fund distributions following FTX’s reorganization plan, which took effect on January 3, 2025. According to the plan, all repayments must be processed within 60 days of this effective date. This has reassured many creditors eager to reclaim their lost assets.
Bitcoin Holders Left Behind – 98% Impacted by FTX’s Cap
Frustration continues to grow among Bitcoin holders on the platform. The cryptocurrency’s value has soared to $96,500, nearly five times higher than the $20,000 per BTC repayment cap imposed by FTX. With 98% of Bitcoin holders affected, many view the cap as a missed chance to benefit from the sharp price increase.
In order to generate funds for repayments, FTX has sold 41 million SOL tokens across three auctions. Galaxy Digital emerged as the largest buyer, acquiring 25.52 million SOL at $64 per token. Since FTX’s collapse, Solana’s price has climbed significantly, boosting Galaxy’s investment return to 187%.
Pantera led the second-largest purchase alongside a group of investors, securing 13.67 million SOL at $95 per token and achieving a 93% gain. Other participants obtained 1.8 million SOL at $102, locking in an 80% profit. Proceeds from these transactions have strengthened FTX’s repayment pool, accelerating the distribution process.
Sam Bankman-Fried’s Conviction and Fallout
FTX’s dramatic collapse in 2022 triggered one of the biggest financial scandals in crypto history. Investigations revealed widespread fraud and mismanagement within the exchange, leading to criminal charges against its founder, Sam Bankman-Fried, and former executive Caroline Ellison.
In March 2024, a jury found Bankman-Fried guilty of fraud, and US District Judge Lewis Kaplan sentenced him to 25 years in prison. The court determined that he had misappropriated billions of dollars, defrauding FTX investors of over $1.7 billion and Alameda Research lenders of more than $1.3 billion.
The FTX token (FTT) has seen notable price movements amid the upcoming repayments. FTT has risen by 5% today, with a trading volume of $28 million. Over the past seven days, it has climbed 14.40%, indicating strong buying pressure in the market.
nextDisclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
