Beleaguered crypto exchange FTX has further revealed the schedule for $16 billion in creditor repayments. Experts revealed early February as the expected timeline for the first repayment in accordance with the Plan and Confirmation Order. Also, the bankruptcy reorganization plan aimed to disburse repayments for small creditors first.
FTX Repayments To Start in February
FTX creditor Sunil Kavuri in an X post on January 12 revealed details of repayments, including the initial distribution schedule and first repayment. According to the plan, the first round of repayments will happen for creditors with claims below $50,000. This makes it a total of approximately $1.2 billion, with January 3 as the record date.
FTX has asked creditors to complete pre-distribution requirements for initial distribution by January 20. Creditors are informed to complete W-8Ben forms. Once KYC verified, creditors need to submit a tax withholding form within 30 days. It is important to note that if a creditor fails to submit the tax form before the 60-day deadline, they will not receive repayments.
Sunil Kavuri expects the first round of repayments to start in February. Also, the repayments would likely continue until March 4.
Check how FTX claims payout would work and the crypto exchanges under the plan to distribute funds to creditors. Meanwhile, creditors have complained about a large number of phishing emails and claim portals claiming to start repayments.
Crypto Community Anticipate Boost in Bullish Crypto Market
While the FTX Debtor has other issues including inaccuracies in Backpack’s FTX EU acquisition claims. The beleaguered firm said 100% of FTX EU share capital is still owned by FTX Europe AG. The U.S. Bankruptcy Court overseeing the Chapter 11 process has not approved any transfer.
Market participants are extremely bullish on FTX repayments giving a much-needed push to the crypto market. expect creditors to put money back into the crypto market as Bitcoin and altcoins to rally under the pro-crypto Trump administration.
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