Under FTX's reorganisation plan taking effect on January 3, 2025, the bankrupt cryptocurrency exchange will begin repaying creditors, potentially injecting up to $16 billion back into the market, with the company promising that 98% of users will recover at least 118% of their claim values from November 2022 when the bankruptcy occurred. The first round of payments, expected within 60 days of the effective date, will target creditors with claims of $50,000 or less, representing more than 90% of all creditors; distributions will be facilitated through crypto firms Kraken and BitGo, conditional on customers completing KYC verification, submitting tax forms, and onboarding with Kraken or BitGo through the FTX claims portal by January 3, 2025.
FTX CEO John J. Ray III called the January implementation of the reorganisation plan and the start of distributions a significant milestone, highlighting that this reflects the outstanding success of the recovery efforts; however, sources differ on the exact amount expected to be paid out. While some analysts suggest FTX currently has between $14.7-16.5 billion to repay customers and creditors, Sunil Kavuri, an advocate for FTX creditors, disputes the $16 billion distribution claims, stating that the company currently has around $13 billion in cash reserves expected to increase to $14 billion by March, with an additional $5-7 billion potentially coming from lawsuits and venture capital investments. The collapse of FTX in November 2022, followed by founder Sam Bankman-Fried's resignation and subsequent conviction on seven counts of fraud and conspiracy, marked one of the largest failures in the cryptocurrency industry; the former CEO was sentenced to nearly 25 years in prison, while Alameda Research CEO Caroline Ellison received a two-year sentence for her role.
From a market perspective, analysts predict the FTX repayments could spark a bullish cycle in 2025 as significant fresh capital flows back into the market; crypto influencer Daan de Rover states that the January 3 payout represents major liquidity injections that are really positive for Bitcoin, while analyst Ash Crypto suggests it could even kickstart an altcoin season. Importantly, while the bankruptcy plan promises most customers a 119% return, users have effectively missed out on the massive rally in the crypto market since November 2022—for example, Bitcoin's price has risen from approximately $17,000 on November 11, 2022, to more than $105,000 today, representing a sixfold increase; if the $16 billion repayment plan proceeds as announced, the crypto market will see significant fresh liquidity, theoretically influencing a bullish cycle in Q1 2025.
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According to a DOJ court complaint, a Nigerian scammer posed as a Trump-affiliated fundraiser and may have targeted two high-ranking MoonPay executives—including its CEO and CFO—to solicit $250,000 in donations.:contentReference[oaicite:1]{index=1}
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