On January 5, 2025, the cryptocurrency community is abuzz with rumors regarding the initiation of FTX's $16 billion repayment plan to creditors. This development has generated both excitement and skepticism among industry players, who believe that cash inflows from these repayments could bolster the crypto market.
FTX Trading Ltd. confirmed that their court-approved Chapter 11 Plan of Reorganization will take effect on January 3, 2025, which is also the initial distribution record date for holders of allowed claims. The first distribution is expected within 60 days of this effective date, contingent upon compliance with KYC and other requirements.
John J. Ray III, CEO of the FTX Debtors, expressed optimism about the recovery efforts, noting that billions of dollars have been recovered. However, skepticism remains, with some crypto experts questioning the credibility of the repayment timeline.
As of January 5, 2025, FTT, the native token of the defunct exchange, is priced at $3.59, reflecting a 6.6% decline over the past 24 hours.