Speculations have been circulating on social platforms that the bankrupt cryptocurrency exchange linked to FTX would initiate the disbursement of reimbursement funds to creditors and clients by September 30th.
Nevertheless, these assertions are unfounded since no court has endorsed the reimbursement strategy yet.
A Recap of Events
For those who might have missed it, back in May, FTX had announced its commitment to fully compensating creditors, with some potentially receiving over 100% of their due amounts.
However, on September 28th, FTX creditor Sunil Kavuri disclosed that the updated bankruptcy papers now suggest that creditors may only recuperate between 10–25% of their crypto assets.
This piece of information circulated online, drawing attention from X (formerly Twitter) user Crypto Rover, who emphasized,
The Real Situation
As per the most recent Chapter 11 submission, the forthcoming court session to ratify FTX’s restructuring blueprint is slated for October 7th, with Judge John T. Dorsey from the United States Bankruptcy Court for the District of Delaware overseeing the procedures.
If the proposal secures approval, claimants with liabilities under $50,000 might potentially start receiving payments by late 2024.
On the flip side, those with larger claims could encounter extended waiting periods, with payouts anticipated to be deferred until the initial or second quarter of 2025.
Voices from the Community
Reflecting on the situation, Sunil, a prominent figure among FTX creditors, expressed thoughts on X saying,
Adding to the discourse was another X user who commented,
“They are unlikely to do so.”
Market Response Anticipated
Under the current reimbursement scheme, creditors will be compensated based on the Bitcoin [BTC] value at the time of the legal filing, which was around $16,000 per BTC.
Consequently, creditors and old customers are poised to receive just a fraction of their original holdings, as highlighted by Sunil Kavuri.
However, some market experts foresee a positive impact on the cryptocurrency market post-reimbursement.
Markus Thielen, the brain behind 10x Research, indicated in a research report that the reimbursement could inject $5 billion to $8 billion into the market, potentially boosting demand and prices.
Echoing a similar sentiment was a crypto trader and investor Sheriff who remarked,
“Expecting more investments.”
FTX Token Performance Analysis
Meanwhile, FTX Token [FTT] encountered a significant uptrend, surging by 113% to an intraday peak on September 29th.
Despite a subsequent correction, FTT ended the day 57% higher than its opening value, sparking speculations among investors about its future trajectory.
As per the latest stats from CoinMarketCap, FTT sustained a 31.53% increase, with a trading value of $2.14, leaving market participants in anticipation of the token’s prospects in the upcoming weeks.