Creditor Champion Debunks Claims of FTX $16B January Repayment
A notable FTX creditor has rebuffed plans that the defunct crypto exchange FTX would resume customer repayment as early as January 2025.For context, the news made the rounds since the weekend that the Sam Bankman-Fried-owned crypto exchange will repay its creditors starting from January 3. The speculation also suggested that FTX would distribute $16 billion to its customers within 60 days of the repayment start date.FTX Creditor RespondsIn a tweet today, Sunil, a self-acclaimed FTX creditor champion, refuted the claims. He noted that the January payments were false and provided the actual distribution details.Sunil stated that FTX has recovered $13 billion from debtors, which could increase to $14 billion in March. Meanwhile, the creditor noted that the bankruptcy estate of the defunct exchange does not intend to distribute the entire amount.He stated that FTX filed to reserve 50% of the recovered funds. As a result, it can only distribute half of the disputed claims, worth $7 billion, in the initial repayment phase.Meanwhile, Sunil noted that FTX would fully recompense its customers in two to three years.Community Seeks ClarityNotably, the FTX bankruptcy estate announced earlier this month that it would resume repaying creditors on January 3. The press release also stated that it would reimburse affected customers up to $16 billion from that date.Amidst the inconsistencies, users have sought clarification on the actual repayment date. For instance, a user pointed to an earlier X post from the FTX page confirming the distribution will resume in January and asked what Sunil made of it.Meanwhile, the FTX bankruptcy proceeding has had its fair share of controversy. Earlier, customers fumed at the cash repayment ruling by the presiding judge, John Dorsey, which allowed the exchange to pay the monetary value of a users balance when it filed for bankruptcy.The ruling meant that creditors missed out on the crypto market's upsurge. For instance, Bitcoin and Solana traded at $16,871 and $16.25, respectively, when FTX filed for bankruptcy in November 2022.
Text source: The Crypto Basic
