FTX announced its plans to start creditor and customer payouts in early 2025 as part of its bankruptcy process, driving a 15% increase in FTX Token.
FTX Bankruptcy Plan
The court-approved bankruptcy plan for FTX was confirmed in October 2024, set to take effect on January 3, 2025. This date will also serve as the 'record date' for the first tranche of payments to some creditors. FTX stated that it will begin payouts 60 days after the plan becomes effective, starting with the 'Convenience Classes' claims.
FTX Token Price Surge
Following the announcement, FTX Token's price jumped to $3.28, pushing the market cap to $1.08 billion. Trading volume surged by 170%, suggesting investors are optimistic about positive outcomes for those affected by the exchange's collapse in 2022.
Future Outlook and Challenges
Despite the positive development of upcoming payouts, the FTX Chapter 11 process has only just begun. It remains uncertain when it will be completed, as the company continues to face complex legal and financial challenges. Recovery will likely take years, largely depending on asset liquidation and resolution of legal matters.
FTX Token saw a significant price surge following payout announcements to creditors, but the road to full recovery remains long and challenging, with the company still facing considerable issues.
