FTX creditors, especially Ethereum (ETH) holders, are set to receive repayments as the crypto exchange begins its plan to pay back customers starting February 18. Here’s what you need to know:
Key Points:
- Ethereum Holders to Gain $2,500: Traders who held Ethereum (ETH) in FTX accounts will receive repayments of up to $2,500. This is part of a broader repayment plan for FTX’s Bahamas-based creditors.
- Bitcoin Repayment Limited to 2022 Prices: Bitcoin holders will be refunded based on November 2022 prices, capping repayment at $20,000 per Bitcoin for most users, despite the cryptocurrency’s significant price surge since then.
- Mixed Reactions from Traders: While many ETH holders express relief, the ongoing debate about the repayment’s fairness, given the market price fluctuations, continues to stir controversy among traders.
Details of the Repayment Plan
The FTX repayment scheme, set to kick off on February 18, will repay creditors in full, including interest, through BitGo. However, customers can expect to receive compensation based on crypto prices from November 2022.
This means those who held Bitcoin (BTC) in FTX accounts will only be refunded at $20,000 per Bitcoin, despite the cryptocurrency’s current trading price of around $97,988, nearly five times higher than it was in 2022.
Also read: Bitcoin to skyrocket soon!
Ethereum’s Stability Provides Relief
Ethereum holders have more cause for optimism. Although the price of Ethereum has risen to $2,698, a nearly $200 increase from 2022, ETH holders still stand to gain approximately $2,500 from the FTX repayment plan.
Traders’ Reactions
The news has sparked mixed reactions on social media platforms like X (formerly Twitter). Many traders argue that repayments should reflect the current market prices. One user commented, “They should have to pay market value at the time of payout!!”
Meanwhile, another trader pointed out the contrast between Bitcoin’s recent surge and Ethereum’s relative price stability, stating, “Mixed news: BTC recovery, ETH value remains stable.”
Also read: Ethereum set to explode, bullish pattern shows!
FTX’s Struggles and Legal Fallout
FTX, the once-prominent cryptocurrency exchange, collapsed in late 2022 under the leadership of founder Sam Bankman-Fried. Investigations revealed widespread corporate mismanagement and fraud, allegedly orchestrated by Bankman-Fried. He was convicted of multiple charges, leading to his 25-year prison sentence. As of January 3, reorganization plans were enacted, requiring repayment within 60 days, with around $13 billion in payout reserves.
However, FTX has filed to withhold half of the funds for disputed claims, leaving the exact amount for Bahamas creditor repayments still uncertain.
Stay tuned for further updates as the repayment plan unfolds.
