FTX Repayments: Expert Announces Initial Distribution and First Repayment Dates

Beleaguered crypto exchange FTX has revealed the schedule for $16 billion in creditor repayments. Experts have announced early February as the expected timeline for the first repayment in accordance with the Plan and Confirmation Order.

FTX Repayments To Start in February

FTX creditor Sunil Kavuri has 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, totaling 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 essential 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, with repayments likely continuing until March 4.

Crypto Community Anticipate Boost in Bullish Crypto Market

While FTX Debtor has other issues, including inaccuracies in Backpack’s FTX EU acquisition claims, market participants are extremely bullish on FTX repayments, giving a much-needed push to the crypto market. Creditors are expected to put money back into the crypto market, as Bitcoin and altcoins are likely to rally under the pro-crypto Trump administration.

In conclusion, FTX’s creditor repayment plan has been revealed, with the first round of repayments expected to start in early February. The plan aims to disburse repayments for small creditors first, with the initial distribution schedule and first repayment dates announced. While there are other issues to be addressed, the crypto community remains bullish on FTX repayments, anticipating a boost in the crypto market.

Q: When will FTX repayments start?
A: According to the plan, the first round of repayments is expected to start in early February.

Q: How much will creditors receive?
A: The first round of repayments will total approximately $1.2 billion, with claims below $50,000 being the priority.

Q: What is the deadline for submitting tax withholding forms?
A: Creditors must submit tax withholding forms within 30 days to receive repayments.

Q: What will happen if a creditor fails to submit the tax form on time?
A: If a creditor fails to submit the tax form before the 60-day deadline, they will not receive repayments.

Q: What is the overall impact of FTX repayments on the crypto market?
A: Market participants are extremely bullish on FTX repayments, expecting a boost in the crypto market, with Bitcoin and altcoins likely to rally under the pro-crypto Trump administration.