On the 18th of Feb 2025, FTX rolled out a test phase, transacting 1 BTC. This began a range of repayments, as Crypto Rover confirms.
FTX’s repayment move should be followed by an injection of around $16 billion in the crypto market. Following this move, Bitcoin showed an immediate price surge. Within 1 hour, the price increased by $2000.
That’s not all. The altcoins also started gaining reasonable traction. Ethereum’s price improved by $150 in 1 hour, too. Meanwhile, the volume of Binance and Coinbase also increased by 20%.
FTX starts With the Creditors First
BitGo and Kraken are helping FTX with the repayment process. In the first round, FTX will pay off 162,000 claims out of 460,000 creditors.
Who are these 162k creditors? FTX commented that people with claims less than $50,000 will be catered to first. In Nov 2022, FTX went bankrupt. After that, a long and arduous legal tussle ensued. Finally, FTX is ready to repay creditors.
The Bigger Dues
Those who expect over $50k will have to wait for the following pay-out rounds. If FTX’s sources are to be trusted, then bigger payments will start clearing from 2025 (Q2). All eyes are set on the date- 11th April. It is the projected date when FTX will declare actual dates of clearance of payments above 50k.
How Much Can FTX Pay?
The amount creditors may get depends on how much FTX can recover before the end of Q2. The current projections of analysts is that FTX will recover around 123 to 138%.
If that’s true, then FTX will pay out more than $16 billion for sure. That’s really good news for creditors, as some of them may get more than the stipulated values.
Good News for Solana?
After FTX’s bankruptcy, SOL was badly hit. FTX liquidated most of the Solana holdings. Now, the same thing is being repeated. To clear payments, FTX is again diluting 11.2 million Solana tokens linked to their earlier investments. That’s a good reason why Solana’s price dropped as low as $160.
