TL;DR
- FTX Digital Markets will begin paying $1.2 billion to creditors with claims under $50,000 on February 18.
- Payments will be based on 2022 values, which has caused discontent due to Bitcoin’s price rise since the bankruptcy.
- The market impact remains uncertain, though some analysts expect part of the funds to return to cryptocurrencies.
FTX Digital Markets will start returning funds to its creditors on February 18. This first phase of the repayment process includes payments to users with claims under $50,000 and will distribute a total of $1.2 billion. It marks a significant step in the company’s restructuring following its collapse, which left losses of nearly $9 billion and affected thousands of investors.
The downfall of FTX and over 130 subsidiaries had a deep impact on the crypto market. The crisis caused by the case contributed to a recession period known as the “crypto winter,” marked by Bitcoin’s price drop to lows near $16,000. Now, with the first repayments underway, some analysts are seeing signs of recovery for the sector.
Users Discontented with FTX Repayments
The payments will be based on the value of assets at the time of bankruptcy in 2022. This approach has caused dissatisfaction among the affected, as Bitcoin’s price has increased by more than 370% since then. While the return of funds offers some relief, many feel it does not compensate for the real losses, especially those who held their investments in cryptocurrencies instead of dollars or other stable assets.
What Will Happen in the Market?
The effect these payments will have on the market remains uncertain. Some experts believe that part of the money could return to cryptocurrencies, helping to improve liquidity. However, since the repayment program only includes creditors with smaller claims, the immediate impact on prices could be limited. Many beneficiaries might opt for safer investments instead of reentering a market that still shows volatility.
FTX’s compensation process will continue in the coming months, with payments pending for creditors with claims over $50,000. The expectation of these repayments could influence investor behavior and overall confidence in the sector. As the company moves forward with its debt liquidation, the market evaluates the long-term effects of one of the largest collapses in cryptocurrency history.
