2 days ago
The FTX bankruptcy story has taken a new turn. Rumors about a customer repayment plan for January 2025 have been dismissed by one of its major creditors, causing even more confusion. The news had circulated over the weekend. Many claimed that FTX would begin repayments on January 3 and distribute $16 billion to creditors within 60 days. However, a key creditor, Sunil, denied these claims, saying the timeline and payout were inaccurate. Sunil Clears the Air on January Repayment Plan In a recent X post, Sunil, an FTX creditor advocate, denied claims about a January repayment date. He explained that the date was wrong and provided an update on FTX’s recovery. He revealed the exchange has recovered $13 billion from debtors, potentially reaching $14 billion by March 2025. However, he warned creditors not to expect an immediate payout as the situation remains uncertain. The confusion stems from FTX’s plan to keep half the recovered funds. Sunil explained that FTX will hold 50% of the $13 billion for future needs, leaving just $7 billion for the first round of payouts. This means the repayment will be slower and smaller than expected, with creditors initially receiving only part of their claims. FTX Debtors to Receive Full Reimbursement in 2-3 Years For those hoping for full compensation soon, Sunil added more caution. He said that reimbursing creditors could take two to three years, much longer than the earlier promise of quick repayment. This has left many customers questioning the truth behind FTX’s recovery plans. Amid the confusion, many users are looking for a clearer repayment schedule. Earlier this month, a tweet from the official FTX account suggested repayments would start in January. This led a user to ask Sunil about the conflicting information. With no clear answers yet, these uncleared questions fuel ongoing frustrations. Legal Hiccups and Missed Opportunities To add another layer to the ongoing controversy, earlier decisions in the FTX bankruptcy proceedings have left many creditors feeling cheated. Earlier, presiding judge John Dorsey made a notable ruling. He allowed the exchange to repay creditors based on the monetary value of a user’s balance at the time of the bankruptcy filing. This meant creditors missed out on the potential profits from the rise in cryptocurrency prices, especially for Bitcoin (BTC) and Solana (SOL). When FTX filed for bankruptcy in November 2022, Bitcoin was priced at $16,871 and Solana at $16.25. This is much lower than their values as of writing. The post FTX Creditor Dismisses $16B January Repayment Rumors appeared first on TheCoinrise.com .
The Coin Rise
You can visit the page to read the article.
Source: The Coin Rise
Tags :
Blockchain News FTX Creditors
Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of BitMaden. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.
Former Terra CEO Do Kwon Enters Not Guilty Plea In Landmark $40 Billion Crypto Trial
Do Kwon, the South Korean cryptocurrency entrepreneur and co-founder of Terraform Labs, pleaded not guilty on Thursday to a series of criminal fraud charges in a Manhattan federal court. This comes just days after his extradition from Montenegro, where he had been detained for over a year. His case centers around the collapse of TerraUSD and Luna (LUNC), which collectively lost an estimated $40 billion in 2022. Ordered To Remain In Custody Following Court Appearance According to a Reuters report, federal prosecutors unsealed a nine-count indictment accusing Kwon of multiple offenses, including securities fraud, wire fraud, commodities fraud, and conspiracy to commit money laundering. Related Reading: If Solana Reclaims $210 ‘New Highs Are Next’ – Price Analysis Dressed in an olive green long-sleeved shirt and black sweatpants, Kwon appeared in court alongside his lawyer, Andrew Chesley, who indicated that they would not seek bail at this time. Following Kwon’s plea, US Magistrate Judge Robert Lehrburger reportedly ordered him to remain in custody. Do Kwon left the courtroom with a copy of the 79-page indictment, and he is scheduled to return for another hearing on January 8. The Fallout From Do Kwon Alleged Fraud And Market Manipulation In June, Kwon reached a civil settlement with the US Securities and Exchange Commission (SEC), agreeing to pay an $80 million fine and accept a ban from participating in cryptocurrency transactions. This settlement was part of a broader $4.55 billion resolution related to alleged misconduct in the management of Terraform Labs. The indictment details how Kwon allegedly misled investors about the stability of TerraUSD, a stablecoin designed to maintain a value of $1. In May 2021, when the stablecoin’s value began to falter, Kwon reportedly claimed that a computer algorithm known as “Terra Protocol” had successfully restored its peg. In reality, prosecutors allege that Do Kwon orchestrated a scheme involving a high-frequency trading firm to secretly purchase millions of dollars of TerraUSD to artificially inflate its price. Related Reading: Weekly Chart Shows That Dogecoin Price Is Primed To Cross $11 In 2025, Here’s How This reportedly drove both retail and institutional investors to buy Terraform products, significantly boosting the value of Luna, another token linked to TerraUSD, to as high as $50 billion by the spring of 2022. The indictment states, “Much of this growth followed Kwon’s brazen deceptions about Terraform and its technology.” However, the situation took a turn for the worse in May 2022 when TerraUSD’s value began to decline again. The trading firm that had previously propped it up warned Kwon that maintaining its value “wasn’t so simple this time.” The subsequent crash of both TerraUSD and Luna sent shockwaves through the cryptocurrency market, leading to substantial losses for investors and contributing to a broader downturn that affected other digital assets, including Bitcoin (BTC). While prosecutors have not disclosed the identity of the trading firm involved, SEC lawyers previously indicated that Jump Trading had played a role in supporting TerraUSD during its peak in May 2021. Featured image from DALL-E, chart from TradingView.com The Coin Rise
Fartcoin Rips 47% Higher to Start 2025
Memecoin sensation Fartcoin is leading the cryptocurrency market higher, rising 47% on the first trading day of 2025. Fartcoin, which is a small, h... The Coin Rise
