The FTX cryptocurrency exchange has revealed a timeline for a total of $16 billion in payments to creditors. Experts anticipate that the first payments will occur in early February, in accordance with the plan and approval order, which prioritizes payments to smaller creditors.
Start Date and Payment Details
Sunil Kavuri, a creditor of FTX, shared details regarding the payments in a statement on January 12. The initial round of payments is planned for creditors with claims under $50,000, amounting to approximately $1.2 billion, with the record date set for January 3.
Before the initial distribution, FTX has requested creditors to complete their requirements by January 20. Creditors must fill out W-8Ben forms and submit tax withholding forms within 30 days after KYC verification. Those who do not submit the tax form within the 60-day window will not receive their payments.
Sunil Kavuri stated, “We expect the first round of payments to start in February, likely continuing until March 4.”
Security and Fraud Warnings
Creditors have reported numerous phishing emails and requests claiming that payments have started. FTX emphasized the importance of being cautious with such communications from unauthorized sources.
Impact on the Crypto Market
The payments from FTX are expected to invigorate the cryptocurrency market. Market participants believe that creditors re-investing their payouts could contribute to the rise of Bitcoin 
$0.000062 and altcoins. These developments are anticipated to gain momentum under pro-crypto policies from the Trump administration.
The FTX debtor highlighted some inaccuracies regarding Backpack’s claims about acquiring FTX EU. The company stated that 100% of FTX EU’s share capital still belongs to FTX Europe AG, and that the U.S. Bankruptcy Court has not approved any transfers.
Current Figures and Expectations
The upcoming payments aim to stabilize the cryptocurrency market and boost investor confidence. FTX’s initiative towards its creditors is expected to create a positive atmosphere in the sector.
Large-scale payments to creditors from FTX are likely to have a positive impact on the cryptocurrency market. As creditors receive their payments and reinvest in crypto assets, the market may see renewed vigor. However, it is crucial to remain vigilant regarding security measures and fake communications.
