FTX Creditors to Get 10-25% of Their Assets, FTT Rallies Amidst Rumors of Bankruptcy Distributions

When FTX filed for bankruptcy protection in November 2022, and CEO Sam Bankman Fried resigned, John Ray III, a bankruptcy litigator, took over to fix the clutter.

bankrupt crypto exchange FTX filed for Chapter 11 bankruptcy protection in November 2022. As part of the bankruptcy proceedings, the exchange has been revealing its financial狀況 and distributing funds to its creditors and customers. Here's a summary of the latest updates on FTX bankruptcy distribution.

According to a court filing on May 7, FTX 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.

However, rumors were circulating online, spreading false information about the FTX distribution. FTX Creditor Activist noted this in an X post.

“False: Large accts spreading false info, FTX distribution has started and/or start on 1st Oct etc and $16bn inflow

7th October: Plan hearing

Approx No.Est. $5.5bn claims bought (50%) – not crypto investors – won't reinvest in crypto

Claims

creditors might only recover 10-25% of their assets. This is due to the firm's plan to base its payouts on the petition date valuation, which would prioritize early claims buyers at the expense of original FTX customers.

“FTX Creditor Activist Sunil Kavuri pointed this out in a recent X post, highlighting that creditors might only get 10-25% of their assets due to the firm's plan to base its payouts on the petition date valuation – a move that would largely benefit early claims buyers and not original FTX customers.

Kavuri also noted that the large accts spreading false info and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their buyers, and not original FTX customers, and notably, to benefit themselves and their assets due to the firm's plan to base its payouts on the petition date valuation, which would prioritize early claims buyers at the expense of original FTX customers.”

FTT Rallies Amidst Rumors Of Bankruptcy Distributions

As the bankrupt crypto exchange FTX prepares to distribute funds to its creditors and customers, the native token of the exchange, FTT, has seen a sharp bullish activity in recent weeks.

Trading at around $1.4 over the past month, FTT surged by more than 70% on Friday, Sept. 29, to reach multimonth highs and briefly touch $2.70 for the first time since March 2024. At press time, FTT is trading at around $2.10.

FTT's rally comes amidst social media rumors alleging that the FTX bankruptcy estate would start distributing reimbursement funds to creditors and customers on Friday, Sept. 30. However, according to the official Chapter 11 filing, the bankruptcy plan has yet to be approved.

A court hearing to approve the plan is scheduled for Oct. 7, at which time Judge John T. Dorsey will preside over the next hearing on FTX’s restructuring plan. If approved, the FTX trustee will start paying distributions to creditors under $50,000 by the end of 2024. On the other hand, creditors with larger claims may receive distributions in the first or second quarter of 2025.

The above is the detailed content of FTX Creditors to Get 10-25% of Their Assets, FTT Rallies Amidst Rumors of Bankruptcy Distributions. For more information, please follow other related articles on the PHP Chinese website!