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FTX may start repaying creditors in October

Sep 29, 2024
  1. Expected FTX Payments
  2. Creditors' Opinions
  3. Uncertainties and Next Steps

There are unconfirmed reports that the bankrupt crypto exchange FTX will start paying its creditors in October.

Expected FTX Payments

From widespread expectations, the repayment plan could be approved when FTX’s proposed restructuring program gets the nod from the court on October 7. Some FTX creditors expect the exchange’s customers to get between 10% and 25% of their crypto back.

Creditors' Opinions

An acclaimed activist, Sunil Kavuri, noted his expectations after spotting a recent move by FTX, where the defunct crypto exchange transferred 18% of the DOJ forfeiture funds, amounting to about $230 million, to equity holders. According to Kavuri, this might indicate future repayments to customers.

The transfer of 18% of DOJ funds shows FTX's readiness to start repayments.Sunil Kavuri

Uncertainties and Next Steps

Although Kavuri and other creditors are making scientific guesses as to when and how FTX would execute the proposed settlement of customers, none of the creditors are certain about the failed exchange’s programs. Some affected parties think the situation will remain unclear until after the court’s decision on October 7.

The upcoming court session on October 7 is expected to shed light on the next steps and conditions for repayments to FTX's creditors.

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