• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Court to Review FTX's Liquidation Plan on October 7

user avatar

by Giorgi Kostiuk

9 months ago


Despite social media rumors suggesting an FTX reimbursement by September 30, customers will have to wait an additional week for updates on repayments.

FTX Awaits Court Approval for Reorganization Plan

When FTX filed for bankruptcy protection in November 2022, and CEO Sam Bankman Fried resigned, John Ray III, a long-time bankruptcy litigator, took over the reins to try and fix the mess. On May 7, 2024, the exchange filed its Chapter 11 Plan of Reorganization and a disclosure statement, revealing that it owed about $11.2 billion to its customers. The company estimated it could distribute between $14.5 billion and $16.3 billion to pay its creditors and customers. The plan also included details on supplementary interest payments that could be made once all claims are paid in full.

We are pleased to be in a position to propose a Chapter 11 plan that contemplates the return of 100% of bankruptcy claim amounts plus interest for non-governmental creditors.John Ray

Analysts Predict Bullish Market Outlook on FTX Repayments

Crypto analyst Miles Deutscher believes that with FTX paying over $16 billion to its creditors, recipients could re-enter the market, making new bids and thus infuse the money back into the crypto market, fueling crypto market activity. Marty Party, a crypto researcher and analyst, also thinks that the $16 billion payout could end up back into the crypto market as reinvestments, providing more liquidity for crypto’s ecosystem. Markus Thielen, founder of 10x research, maintains that FTX disbursements could contribute to a positive crypto market outlook. He remarked that there could be a melt-up in risk assets since the Federal Reserve seemed to have raised the S&P 500 level at which they would step in to protect investors. This, he explained, suggested potential for additional rate cuts, commonly known as the “Fed put.” Consequently, he believed many investors would likely adjust their portfolios in preparation for 2025.

The next court hearing is set for October 7, and Judge John T. Dorsey will preside. Creditors will have to wait till then to get some clarity on their repayments. If the court approves the plan, creditors with smaller claims under $50,000 may receive their paybacks before the year’s end.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

Predictions for XRP and the Rise of New Token Remittix

chest

Analyzing fresh forecasts for XRP and the emergence of Remittix token in the PayFi landscape.

user avatarGiorgi Kostiuk

WazirX Provides Details on Proposed Legal Arrangement Amid Community Frustrations

chest

WazirX shares updates on its legal process in Singapore and user frustrations over lack of resolutions.

user avatarGiorgi Kostiuk

Copyleft Licenses: Vitalik Buterin on Safeguarding Open Source

chest

Ethereum founder Vitalik Buterin advocates for copyleft licenses to maintain open collaboration in the crypto industry.

user avatarGiorgi Kostiuk

SharpLink Gaming's Plan: $425 Million Ethereum Treasury

chest

SharpLink Gaming has announced a treasury strategy reserving $425 million in Ethereum, potentially altering crypto asset perceptions.

user avatarGiorgi Kostiuk

Graphite Protocol Token Market Cap Hits $1.2 Billion

chest

The market cap of Graphite Protocol token reached $1.2 billion, with a 22.2% price increase in 24 hours.

user avatarGiorgi Kostiuk

Garlinghouse Testifies: The Need for Clear Rules in Cryptocurrency

chest

Ripple CEO Brad Garlinghouse will testify before the U.S. Senate, addressing the urgent need for clear regulations in the crypto market.

user avatarGiorgi Kostiuk
dapp expert logo
© 2020-2025. DappExpert. All rights reserved.
© 2020-2025. DappExpert. All rights reserved.

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.