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FTX creditors to receive $16B in 2025

FTX creditors to receive $16B in 2025

GrafaGrafa2024/12/31 06:40
By:Mahathir Bayena

FTX’s (CRYPTO:FTT) impending $16 billion repayments to creditors are generating optimism for a potential crypto bull run in early 2025.

The bankrupt exchange’s Chapter 11 reorganisation plan, set to take effect on January 3, outlines initial payouts within 60 days, aiming to return 98% of customer funds.

Analysts believe the influx of fresh liquidity could invigorate the market, with significant investments expected in Bitcoin and altcoins.

CryptoQuant data indicates that at least $12 billion of the repayments will be in stablecoins, which could fuel an altcoin season.

“FTX begins repaying $16 BILLION to creditors on January 3, 2025. EXPECT MAJOR LIQUIDITY INJECTIONS. THIS IS SO BULLISH FOR BITCOIN!” tweeted crypto influencer Daan de Rover.

The repayment process prioritises claims under $50,000, with larger reimbursements slated for later in the year.

Despite this, questions remain about the timeline and scale of distributions.

Sunil Kavuri, an advocate for creditors, dismissed claims of January payouts, stating FTX holds approximately $13 billion in cash reserves, with an expected increase to $14 billion by March.

Additional funding from lawsuits and venture capital investments could add $5 billion to $7 billion, according to Kavuri’s analysis.

The broader market, currently in a neutral phase, could benefit from renewed trading activity as repayments progress.

Bitcoin (CRYPTO:BTC), having crossed the $100,000 threshold multiple times this year, reflects the underlying bullish sentiment.

FTX, which filed for bankruptcy in November 2022, has been under scrutiny following the resignation of its founder Sam Bankman-Fried and legal challenges involving company executives.

While uncertainties about the repayment schedule persist, analysts remain optimistic about the potential for a liquidity-driven market rally.

At the time of reporting, the FTX (FTT) price was $3.65.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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