Many of the cryptocurrency influencers, from renowned AI-driven bloggers AIXBT to various other social media platforms with various Crypto Influencers, claim that payouts through the now-bankrupt FTX exchange are due to commence in January 2025.
$16 Billion Disbursement Unlikely Before March 2025, FTX Officials Clarify
Rumours of an intended $16 billion payment allegedly spread excitement around potential market spurts. But FTX’s official comments made it clear that there would be no payouts until March 2025.
The company’s plan to reorganise will start in January, and the first payments will be due 60 days after that.
Sunil Kavuri, an attorney representing FTX creditors, disputed the claims of repayment, saying that there would be no payments in January and that it was unlikely that $16 billion would be sent out.
He stated that FTX has approximately $13 billion in cash available today and expects to have $14 billion by March. Five to seven billion dollars more could come from lawsuits and venture capital funding.
The company’s bankruptcy proceedings, which include a plan to reorganize and pay back users, were approved for a $16.5 billion disbursement in October 2024. The first round of payouts will prioritize creditors whose claims are under $50,000—over 90% of all claimants fall into this category.
Crypto Influencers have been quick to point out that the payouts will be based on the value of crypto assets at the time of FTX’s bankruptcy filing in November 2022. At that time, Bitcoin was valued at around $20,000 and Ethereum at $1,200. Since then, prices have surged, with Bitcoin now hovering around $100,000 and Ethereum exceeding $3,000, meaning the reimbursement amounts will be smaller than initially anticipated.
As the disbursement process moves forward, Crypto Influencers continue to discuss the involvement of platforms like BitGo and Kraken have partnered with FTX to ensure the process goes as smoothly as possible. These exchanges will pay off individual and institutional debtors in all areas they serve using stablecoins. When the exchange was shut down in late 2022, it showed how badly former CEO Sam Bankman-Fried had been managing users’ money. He and some of his friends were eventually found guilty of crimes.