Embattled Crypto Exchange FTX to Begin Repaying Creditors in February 2025

FTX, the embattled crypto exchange, will begin repaying its creditors in February 2025 as part of the plan to distribute $12 billion in the first quarter

Embattled crypto exchange FTX will begin repaying its creditors in February 2025, as part of a plan to distribute $12 billion in the first quarter of the year.

According to a recent post on FTX’s official website, the exchange will first focus on distributing funds to creditors with claims under $50,000, which are classified as the “convenience class” in FTX’s Chapter 11 plan. The distributions will be overseen by FTX’s Recovery Trust and are scheduled to begin on Feb. 18, 2025.

Creditors will be required to meet certain pre-distribution requirements to be eligible for the initial round of repayments, the post noted.

FTX plans to distribute the funds through established cryptocurrency platforms BitGo and Kraken. The company anticipates processing these initial payments by March 4, 2025.

Importantly, the repayments will include 9% annual interest calculated from Nov. 11, 2022, which could benefit creditors due to the increased value of FTX’s crypto holdings since its 2022 bankruptcy.

A crucial milestone in FTX’s recovery process was reached on Jan. 3, 2025, when the court approved FTX’s Chapter 11 plan, which saw the new FTX begin operating under the leadership of CEO Andy Othling.

FTX Token (FTT) Breakout Signals Potential Run to $4.00

In related market analysis, FTT, the native token of FTX, is currently trading around $1.94 on major cryptocurrency exchanges.

As we can see from the FTT/USDT 4-hour chart, FTT has broken through the upper border of a falling wedge, which usually signals a potential bullish trend reversal. Together with the recent news of upcoming creditor repayments, which could be boosting market sentiment around FTX, FTT traders may want to keep their eyes on a potential move toward the $4.00 price level.

From a technical standpoint, there are two key points to note on the 4-hour chart. First, the SLDJ is also forming a golden cross at a low level near 20 and showing an upward trend. Second, the MACD has been running in double lines below the zero axis for a period of time on the daily chart.

Overall, FTT has shown a strong breakout from the falling wedge pattern on the 4-hour chart, which could signal a potential bullish trend reversal. As FTT continues to trade at a low price relative to its pre-crash levels, some traders may be anticipating a potential rally in the coming months.