Collapsed cryptocurrency exchange FTX could begin refunding its users approximately $1.2 billion in cryptocurrency as early as February 25.
According to one of FTX’s best-known creditors, identified in networks as Sunil, the schedule for refunding money to clients will begin starting next month, after US President-elect Donald Trump takes office. According to Sunil, FTX payments will not occur before January 20, which is the deadline for users to meet the initial distribution requirements.
In September 2024, rumors spread that FTX’s creditors would begin receiving payments, causing a drastic increase in the price of the platform’s native currency, FTT. It was speculated that $16 billion would be returned to creditors, which could have generated bullish euphoria among investors. It was said then that repayments would begin from October 1, 2024, which would inject liquidity into the market, but these were false rumors.
After learning that FTX refunds would be postponed until after Trump’s inauguration, the FTT cryptocurrency stepped back 15.1% to trade around $2.30. This setback reflects uncertainty and the market’s reaction to changes in the payment schedule.
According to market analysts such as Anndy Lian, smaller investors are likely to sell their holdings. in search of financial security. However, those with “a little more faith in the long-term prospects of cryptocurrencies” could hold on, “betting on future growth.” Lian also commented that “it all depends on individual circumstances and risk appetite.”
Last December, revealed that the Kraken and BitGo platforms were selected to support the redistribution of funds to FTX creditors. This process will be carried out under a reorganization plan that came into effect on January 3, 2025. This plan seeks organize and ensure that refunds are made in an orderly and fair mannerinitially prioritizing users with claims less than USD 50,000.
While analysts suggest that this refund could have long-term positive effects on the cryptocurrency market, by restoring confidence to investors and possibly attracting new participants; the situation remains dynamicand the markets’ reaction will depend on how this refund process is managed in the coming months.
