FTX to begin distributing $1.2B to creditors after Trump inauguration
FTX plans to repay over $1.2 billion to its users, who have been unable to access their funds for more than two years. Users with claims up to $50,000 must fulfill pre-distribution requirements by January 20, 2025, after which repayments are expected to begin. This date coincides with Donald Trump's inauguration, leading to speculations of increased regulatory clarity in the cryptocurrency industry. Approximately 98% of FTX users are anticipated to receive 119% of their declared funds' value, despite criticism surrounding the repayment model, which is based on cryptocurrency prices at bankruptcy. Market volatility is expected as some claimants may reinvest their funds into other cryptocurrencies, while others may opt for cashing out for security. This distribution could also influence the crypto market cycle heading into 2025. The case draws parallels to the Mt. Gox bankruptcy, where many creditors opted to hold their assets despite significant price appreciation in Bitcoin since the exchange's collapse.
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