- The FTX exchange has made a recent announcement to its creditors repayment plan.
- The exchange has been working on its repayment initiation for the past several months.
This day might rise as a remarkable milestone in crypto history, for two coinciding events taking place. Bitcoin has come closest to hitting the $1 million target with a new all-time-high standing at $99,000. This has led to a full-fledged bull run in the crypto market. The overall market cap shows a 3.57% hike reaching $3.3 trillion.
On the other hand, the FTX exchange has announced a recent update to its creditors’ repayment plan in the past day. According to its official report, the FTX debtors are expected to finalize a repayment date by the end of December. Furthermore, they plan to initiate repayments in early January 2025.
The FTX exchange has been working on the plan since the first half of 2024. During particular instances of its announcements, the activity has propelled prices upward movements. When analyzing, if its recent announcement contributed to the bull run, it could be counted as one among several.
This current Bitcoin’s bullish cycle was majorly propelled by the SEC chair’s stepping-down announcements. It was further accompanied by several political altercations on the US front. While other reasons caused Bitcoin to travel from the $70K range to current levels, FTX from historic data, could have played a role in the past day’s movements.
An Overview of FTX’s Repayment Plan Journey
FTX exchange began its repayment plan discussions early this year and received approval from the US Court in August 2024. The plan involved a repayment budget of $12.7 billion and was an initiation following a two-year gap after the collapse.
Following this, the exchange faced regulatory complications with the SEC. The regulator had issues with FTX’s use of stablecoins after the US court’s approval. The FTX exchange collapsed in 2022 when Sam-bankman Fried was convicted of money laundering through the exchange.
The founder recently filed for a new trial stating reasons for unfair judgment. Meanwhile, in the last 24 hours, the FTT token has surged 26% following the announcement as per CMC data.
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