FTX has disclosed its repayment schedule for $16 billion in creditor claims, with the first round of repayments expected to begin in early February. According to Sunil Kavuri, a creditor of FTX, the plan is to prioritize small creditors, with the first repayments directed to those with claims under $50,000, amounting to approximately $1.2 billion. The record date for these claims was set for January 3, and creditors are required to meet pre-distribution requirements by January 20, including submitting W-8Ben forms and tax withholding paperwork.
The repayments are expected to continue through early March, with the first distribution occurring in February. However, creditors must ensure that all necessary forms are submitted within the 60-day deadline to avoid missing out on repayments.
The FTX repayment process has generated excitement within the crypto community, as many participants anticipate that these repayments will inject funds back into the market. This influx is expected to fuel a bullish rally, particularly with the crypto-friendly stance anticipated under the incoming Trump administration, further boosting investor confidence in Bitcoin and altcoins. However, there have been concerns about phishing scams targeting creditors, with fraudulent emails and claim portals seeking to exploit the situation.
While the repayment process is moving forward, FTX is also addressing other issues, including inaccuracies in claims related to its acquisition of FTX EU, with the U.S. Bankruptcy Court yet to approve any transfer of share capital in the region.
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