FTX Bahamas Repayments to Begin, Ethereum Holders Stand to Gain $2,500

Traders who held Ethereum in their FTX holdings are set to receive a significant repayment as part of the FTX repayment plan, scheduled to start on February 18. According to the plan, creditors’ claims will be repaid in full, including interests, through BitGo.

Repayment Plan Details

However, customers will not be able to benefit from the current market prices for their FTX holdings. The repayment plan will refund crypto holdings based on November 2022 prices. This means that traders who held Bitcoin in the now-defunct crypto exchange will only receive repayment capped at $20,000 per Bitcoin for 98% of its users.

At the time of writing, Bitcoin is trading at $97,988, a significant increase from its 2022 price. Ethereum holders, on the other hand, can expect to gain $2,500 from their holdings in FTX, despite the current price of $2,698 being lower than its 2022 price.

Trader Reactions

Many traders have expressed mixed reactions to the creditor repayments. Some have commented on the relatively stable price of Ethereum over the past two years, while others have criticized the decision to repay based on 2022 prices.

“They should have to pay market value at time of payout!!” said one user.

“Mixed news: BTC recovery, ETH value remains stable,” said another user.

FTX Collapse and Reorganization Plans

The FTX collapse in 2022 was led by founder Sam Bankman-Fried, who was convicted of multiple charges, including corporate mismanagement and fraud. As part of the reorganization plans, creditor repayments were required to proceed within 60 days of January 3. Court filings showed that the defunct crypto exchange has around $13 billion in payout reserves.

However, the estate has filed to withhold half of the total amount for disputed claims, leaving the exact sum allocated for Bahamas creditor repayments unknown.

Tips for Traders

For traders who held Ethereum in their FTX holdings, it’s essential to understand the repayment plan and its implications. Here are some key points to consider:

  • Ethereum holders can expect to gain $2,500 from their holdings in FTX.
  • The repayment plan will refund crypto holdings based on November 2022 prices.
  • Traders who held Bitcoin in FTX will only receive repayment capped at $20,000 per Bitcoin for 98% of its users.

Stay up-to-date with the latest news on the FTX repayment plan and other cryptocurrency developments on Global Crypto News.

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