Speculation has been circulating on various social media platforms regarding the potential distribution of reimbursement funds to creditors and customers of FTX’s troubled crypto exchange by September 30th.
Contrary to these claims, no official approval for the reimbursement plan has been granted by any court at this time.
A Recap of Events
For those who might have missed it, back in May, FTX had initially announced its commitment to fully pay back creditors, with some anticipated to recover more than 100% of their losses.
However, a recent update on September 28th from FTX creditor Sunil Kavuri indicated that revised bankruptcy documents suggest creditors might only regain 10–25% of their crypto assets.
This piece of information gained traction online, as pointed out by Crypto Rover, a prominent user on X (formerly Twitter).
The Current Situation
Per the latest Chapter 11 filing, the upcoming court session to finalize FTX’s restructuring strategy is set for October 7th, with Judge John T. Dorsey of the United States Bankruptcy Court for the District of Delaware overseeing the proceedings.
If the plan is given the green light, claimants with less than $50,000 in claims could potentially start receiving payments by the end of 2024.
However, those with higher claims may expect longer waiting periods, with distributions likely to be postponed until the first or second quarter of 2025.
Community Response
Weighing in on the conversation, Sunil, an FTX Creditor Champion, expressed his views on X regarding the developments.
Another X user also chimed in, saying,
“They will not.”
Market Reaction Anticipation
Under the existing reimbursement plan, creditors will be reimbursed based on the value of Bitcoin [BTC] at the time the legal petition was filed, which was roughly $16,000 per BTC.
As a consequence, creditors and previous customers are projected to receive approximately a quarter of their initial holdings, as highlighted by Sunil Kavuri.
Despite this, some analysts believe this payout could have a positive impact on the crypto market.
Markus Thielen, the founder of 10x Research, indicated in a research report that the reimbursement might result in a capital inflow ranging from $5 billion to $8 billion, potentially increasing demand and prices.
Supporting a similar viewpoint was a crypto trader and investor Sheriff, who remarked,
“Expecting more inflow.”
FTX Token Price Movement
Meanwhile, FTX Token [FTT] observed a significant surge, peaking at a 113% increase during trading on September 29th.
Despite a subsequent correction later in the day, FTT concluded 57% higher than its opening value, sparking discussions among investors about its future trajectory.
According to the latest data from CoinMarketCap, FTT maintained a 31.53% increase, trading at $2.14, prompting market participants to speculate on the token’s potential in the upcoming weeks.