Now Defunct FTX exchange founded by Sam Bankman Fried is set to resume paying creditors from Jan 20. The operation date tallys with the Inauguration date of President-Elect Donald Trump.
FTX is set to repay up to $1.2 billion to creditors who have fulfilled pre-distribution requirements for initial distribution from Jan 20.
The development was made public by Sunil a verified FTX Creditor via an X post outlining the specific dates involved and the category of creditors affected.

The Jan 20 deadline by FTX coincides with Donald Trump’s inauguration date.
This caused speculations of a perceived improvement in regulatory clarity for the crypto industry as the main motive behind FTX picking the date.
Remembering what happened to FTX?
FTX founded by Sam Bankman Fried in 2019 was arguably one of the biggest crypto exchanges during its days. The exchange which was backed by Sequoia Capital, SoftBank, and Temasek offered its users innovative products like derivatives, options, and tokenized stocks.
In November 2022, FTX filed for Chapter 11 bankruptcy following a series of financial and operational issues.
Apparently FTX founder was using customer funds on FTX to fund risky investments in Alameda Research, a sister company.
A leaked balance sheet of the Exchange revealed serious financial lapses in the companies finances setting up panic amongst investors who rushed to withdraw their money.
FTX could not meet the Withdrawal demands and filed a bankruptcy leading to the total collapse of the exchange.
FTX collapse was a major event in the crypto market due to the sheer size of funds lost. The loss shook the crypto market leading to the drop in price of many crypto assets.
Sam Bankman Fried Legal Issues
Sam Bankman-Fried, the founder of the cryptocurrency exchange FTX, was sentenced on March 28, 2024, to 25 years in federal prison for orchestrating multiple fraudulent schemes.
In addition to the prison term, he was ordered to forfeit $11 billion and will undergo three years of supervised release following his incarceration.
Following his sentencing, Bankman-Fried filed an appeal against his fraud convictions and the 25-year prison sentence on April 11, 2024.
Bankman Fried would be available for release in 2049 according to his sentencing.