FTX Repayments Restart: Could It Trigger An Altcoin Season? 

FTX’s repayment process restarted on 18 February as part of its long-awaited bankruptcy reorganization plan.

After FTX filed for bankruptcy in November 2022, court‐approved efforts have gradually recovered billions in assets. The reorganization plan approved in October 2024, provides for full repayment (plus interest) to customers, although the amounts are calculated based on crypto valuations from November 2022.

As a result, many users holding assets like Bitcoin may see their cash recoveries capped at the 2022 value rather than benefiting from the market’s subsequent rally.

FTX repayment timeline and amounts

The repayment officially started on 18 February 2025. Small creditors — those with claims under $50,000, grouped in the ‘Convenience Class’ — started receiving their repayments. This phase will continue until 3 March.

These customers can expect around 118% of their claimed value (including accrued interest at roughly 9% from November 2022). Larger claims (over $50,000) will be repaid later, with initial disbursements targeting roughly $6.5–$7.5billion in the first phase.

Sources indicate that FTX’s asset recovery has yielded between $14.7bn and $16.5bn in funds (or up to €15bn, according to some reports), which will be distributed among its creditors.

Repayments are being processed through regulated platforms, with BitGo and Kraken handling the disbursements. Creditors must complete KYC verification, submit required tax documents, and choose their preferred payout method via the official FTX Claims portal to ensure timely.

When is the next phase of FTX repayment?

The next phase of repayments is scheduled to begin on 11 April 2025, with a subsequent distribution planned for 30 May 2025.

The next phase is expected to focus on creditors with larger claims — those whose claims exceed $50,000 — and on any accounts that require additional review or dispute resolution. In other words, while the first phase targeted the Convenience Class, subsequent distributions will cover the remaining creditors, including larger accounts that didn’t qualify for the initial payout.

Altcoin season sentiment and market implications

This initial repayment has sparked a wave of optimism in the crypto community and is fueling speculation about a potential altcoin season. Here’s why:

Liquidity injection

The release of $1.2bn into the market is seen by many as a liquidity boost. With creditors receiving cash, there’s an expectation that a significant portion of these funds could be reinvested into digital assets.

Such reinvestment may favor altcoins, particularly those that have underperformed relative to Bitcoin, thereby driving renewed demand and triggering an altcoin rally.

Restored investor confidence

The structured repayment process is viewed as a successful, albeit painful, recovery measure following one of the most notorious collapses in crypto history. The fact that FTX can now return funds — even if based on outdated valuations — signals that robust resolution mechanisms are in place. This could restore some degree of trust in the broader market and encourage speculative buying in altcoins as investors search for higher returns.

Solana’s specific concerns

A major point of contention is the upcoming unlocking of 11.2 million SOL tokens on 1 March 2025, valued at roughly $2.06bn. This unlock represents a significant addition to Solana’s circulating supply (over 2% of current supply) and raises fears of potential sell-offs.

If a substantial number of SOL holders decide to liquidate their positions immediately, it could lead to downward pressure on the price of SOL.

However, many institutional investors — such as those who participated in previous SOL auctions (Galaxy Digital, Pantera Capital, Figure) — might opt to hold for the long term, potentially mitigating extreme volatility.

To sum it up

The cash injection is anticipated to boost liquidity and reinvestment across the crypto market

Increased investor confidence could shift focus toward altcoins, potentially sparking an altcoin season

Caution remains around Solana due to the impending unlocking of 11.2 million SOL, which might cause temporary sell pressure and volatility