Donald Trump

Bitcoin

Impact

FTX is gearing up to repay more than $1.2 billion to its users, marking a key milestone in its bankruptcy recovery process. 
Once the world’s second-largest centralized cryptocurrency exchange (CEX), FTX collapsed in November 2022, leaving countless users unable to access their funds. Now, after over two years of uncertainty, the repayment phase is set to begin, bringing relief to affected users. 
The exchange has set January 20 as the deadline for users to fulfill pre-distribution requirements for claims of up to $50,000. <a href="https://x.com/sunil_trades/status/1878370811515379942">According</a> to Sunil, a prominent member of the FTX Customer Ad-Hoc Committee, “Repayments likely won’t start before Jan. 20.” This timeline aligns with the previously approved restructuring plan, which prioritized smaller claims to ensure a fair and timely resolution. 
The plan, which received approval in October 2024, is expected to benefit 98% of FTX users, offering them 119% of the declared value of their claims. However, the repayment model bases compensation on cryptocurrency prices at the time of bankruptcy, a point of contention for many creditors. For instance, Bitcoin has surged over 370% since FTX’s collapse, leaving some claimants feeling short changed despite the significant repayment progress. 
<h2 id="span-style-font-weight-400-ftx-repayments-poised-to-impact-the-crypto-market-span">FTX Repayments Poised to Impact the Crypto Market</h2> 
Interestingly, the repayment timeline coincides with the <a href="https://thecoinrise.com/immediate-crypto-policy-changes-unlikely-as-trump-takes-office-nydig-research-head/">inauguration of US President-elect Donald Trump</a> on January 20, an event that has sparked speculation about potential regulatory shifts in the crypto space. Industry insiders are particularly focused on the proposed Bitcoin Act, which could establish a US Bitcoin reserve. 
The combination of regulatory developments and the infusion of capital from FTX repayments is expected to impact the broader crypto market. Analysts have pointed out that this could serve as a catalyst for the next upward phase in Bitcoin’s price cycle, with projections suggesting a potential <a href="https://thecoinrise.com/bernstein-predicts-bitcoin-path-to-200k-as-new-ath-looms/">surge past $200,000 by year-end 2025</a>. 
<h2 id="span-style-font-weight-400-opinions-divided-span">Opinions Divided</h2> 
However, opinions remain divided. While some experts anticipate heightened market volatility, others see the repayments as a step toward restoring trust and credibility in the cryptocurrency sector. As intergovernmental blockchain expert Anndy Lian noted, “The repayments represent a crucial step in rectifying past damages and rebuilding the industry’s reputation.” 
With the January 20 deadline approaching, all eyes are on <a href="https://thecoinrise.com/key-update-in-ftx-exchanges-16b-creditor-repayment-plan/">FTX and the ripple effects its repayment process</a> could have on the crypto landscape. For many users, it marks a long-awaited closure to one of the industry’s most turbulent chapters. 
The post <a href="https://thecoinrise.com/ftx-to-distribute-1-2b-in-repayments-to-users-as-trump-inaugurates/">FTX to Distribute $1.2B in Repayments to Users as Trump Inaugurates</a> appeared first on <a href="https://thecoinrise.com/">TheCoinrise.com</a>.

FTX to Distribute $1.2B in Repayments to Users as Trump Inaugurates

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