FTX is gearing up to distribute more than $1.2 billion in repayments to its investors, many of which has lost their live savings during the companies crash back in 2022.

After a 2-year wait, FTX is finally ready to repay its users. FTX will likely start repaying claims of up to $50,000 after Jan 20, according to Sunil, who is the spokesman who have vowed to represent all the creditors who have lost their money in the FTX scandal.

Repayments likely won't start before then, Sunil wrote on his social media. The Jan 20 deadline also coincides with US President-elect Donald Trump's inauguration, a date anticipated to bring potential regulatory clarity, including discussions around the proposed Bitcoin Act, which advocates for establishing a U.S Bitcoin reserve.

These two events that happen on the same day could catalyze the next leg up in the 2025 crypto market cycle, which could see Bitfoin surpass $200,000, according to some industry watchers.

Regain investor's confidence in cryptocurrencies

Users owed up to $50,000 in digital assets will be the first batch of investors who will be set to get the refund from FTX according to the company's restructuring, which was approved in October 2024.

The company has promised to return 98% of FTX users their funds with a 19% interest. But some creditors have criticized the distribution plan for reimbursing investors claimants based on the price of Bitcoin at the time of the bankruptcy. Bitcoin prices, for example has increased by more than 370% since the day of the bankruptcy.

While cryptocurrency will remain to be highly volatile, but the FTX payments are crucial in mending the past mistakes and reestablishing investor's confidence in cryptocurrencies. Despite its best efforts to mend old wounds, there is bound to be a varied reaction from investors.

Some investors will forever shine away from cryptocurrency for greater financial stability, while there will be others who will continue to dabble in cryptocurrency and betting on future growth.

Crypto firms BitGo and Kraken have both announced that they would be assisting FTX with its repayment efforts.