FTX reveals schedule for $16 billion payments

FTX, the cryptocurrency exchange in the spotlight, has announced a complete schedule to give a total of $16 billion to its creditors. Initial payments are expected to begin in early February, with a focus on prioritizing smaller creditors as outlined in the recently court-approved plan.

When do payments start?

Sunil Kavuri, a creditor representing FTX, released crucial information about the payment timeline on January 12. The first payments are earmarked for creditors with claims below $50,000, totaling approximately $1.2 billion. January 3rd is marked as the maximum start date for these payments.

How do you ensure payment reception?

Before the first payment, FTX has instructed creditors to fulfill several requirements by January 20. Creditors must complete and submit W-8Ben forms along with tax withholding documents within a period of 30 days after KYC verification. Those who do not comply within the 60-day period risk having their payments forfeited.

Several creditors have reported phishing attempts related to these payments. FTX has issued a warning requesting warning regarding unauthorized communications that claim payments have been initiated.

The expected payouts from FTX are expected to revive the cryptocurrency market. Industry observers predict that as creditors reinvest their money, it could lead to a recovery in Bitcoin and other altcoins, especially with expected favorable policies from the Trump administration.

– The first payments worth $1.2 billion will target smaller creditors.
– Creditors must submit the necessary forms by January 20 to receive payments.
– Phishing attempts have increased, requiring caution from creditors.

The proactive measures taken by FTX are expected to create a more optimistic environment within the crypto sector as creditors receive funds. These developments could restore investor confidence, although maintaining cybersecurity awareness is extremely important.