Key Takeaways:
- FTX reimbursement payments will not start on September 30, 2024, as the distribution plan still awaits court approval.
- Smaller claimants could receive payments by late 2024 if the plan is approved, while larger claims may not be settled until mid-2025.
- A debate over cash vs. crypto reimbursement has caused tensions among creditors, with legal requirements favoring cash payouts.
Rumors about FTX starting reimbursement payments to creditors on September 30, 2024, are false, as the bankruptcy plan has not yet been approved.
A court hearing to finalize the restructuring plan is scheduled for October 7, 2024, with Judge John T. Dorsey presiding.
FTX DISTRIBUTIONS DO NOT BEGIN TOMORROW.
— Ran Neuner (@cryptomanran) September 29, 2024
Here are the facts:
– October 7, 2024 court hearing will take place to confirm FTX's Chapter 11 plan of reorganization.
– If approved, it will pave the way for repayments to begin.
– Post-Hearing Payments: Payments are… pic.twitter.com/7uTG5qwP8v
If approved, smaller claimants (under $50,000) may receive payments by late 2024, while larger claims could be paid by mid-2025.
Disagreements persist among creditors, with some, led by Sunil Kavuri, advocating for in-kind reimbursements (cryptocurrency) rather than cash to avoid taxable events.
FTX’s legal team insists on cash payments, in compliance with Chapter 11 laws.
🤯Rumors that #FTX will begin distributing refunds to creditors on September 30, 2024 are FALSE❗️
— Satoshi Sniper (@SatoshiSniper_) September 30, 2024
The restitution plan has not yet been approved by the court. 🤔
According to updated Chapter 11 filings, next court hearing to approve restructuring plan will take place on October… pic.twitter.com/xrsdBqpn9d
The final distribution is expected to recover only 25% of holdings due to low asset prices at the time of filing.
Markus Thielen of 10x Research speculates the payout could inject $5 to $8 billion into the cryptocurrency market, potentially boosting prices.
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