FTX's Repayment Plan: Bitcoin Holders Face $95K Gap

FTX, the once-thriving cryptocurrency exchange, is set to commence repayments to its Bahamas-based creditors on February 18, 2025. This significant development comes nearly three years after the exchange's collapse in 2022. The repayment structure has been designed to provide $2,500 per ETH for Ethereum holders and a cap of $20,000 for Bitcoin claims, both based on November 2022 prices.

The announcement has sparked investor frustrations, particularly among Bitcoin investors. At the current market value of approximately $97,988, the repayment amount represents a substantial gap. In contrast, Ethereum's current price of around $2,698 shows a smaller difference, which may ease the blow for ETH holders.

Crypto analyst @Ren_gmi highlighted that FTX aims to return between $14.7 billion and $16.5 billion, potentially paying creditors over 118% of their original account values from November 2022. However, despite this large amount, less than $3B is expected to return to the crypto market. After FTX's collapse, bankruptcy claims were initially sold for as little as 5 cents on the dollar. As more assets were recovered, including gains from FTX's VC investments like Anthropic, Sui, and the SOL rally, the value of these claims surged. Currently, claims are trading above their original November 2022 value, although crypto holders may still face losses in terms of actual coins.

There is a massive fear of liquidity rising and fewer payout talks. PlanB's recent poll asked followers if they would keep the cash or buy Bitcoin with the repayment. The results showed a strong preference for Bitcoin, with over 70% of respondents choosing to reinvest in BTC, reflecting the community's confidence in Bitcoin's long-term potential despite short-term market fluctuations.

For Bitcoin holders, the repayment cap feels like a hard hit, given BTC's explosive growth since 2022. On the other hand, Ethereum holders face a milder impact since the price difference is minimal. This disparity has fueled debates on X, with users arguing that repayments should reflect current market values. Despite the controversy, FTX's repayment process is a critical step in closing the chapter on