FTX Begins $16
Billion Repayment
Today, Marking A Positive
Turn For The Crypto
Industry—
Here’s Why
FTX Begins $16 Billion Repayment Today, Marking A Positive Turn For The Crypto
Industry—Here’s Why
by Ronaldo Marquez
4 minutes ago
in FTX
0
Rumors are swirling through the cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта community regarding the
commencement of FTX s long-awaited $16 billion repayment plan to
creditors, a move that has garnered both excitement and skepticism.
As the defunct exchange, once led by the now-convicted Sam Bankman-Fried,
prepares to initiate these payments , key industry players are expressing
optimism about the potential positive impact on the crypto market• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта.
$16 Billion Creditor Repayment Process
Many analysts believe that a portion of the cash payments from FTX s
repayment plan will flow back into the cryptocurrency• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта market, thereby
bolstering the overall bullish trend of the digital asset ecosystem.
The expectation is that these inflows could provide much-needed liquidity,
encouraging further investment and participation in the market. However, not
everyone shares this optimistic viewpoint.
Some participants in the crypto space are questioning whether the repayments
will indeed start today or if they have been delayed. This skepticism is
fueled by the uncertainty surrounding the timeline for the distribution of
funds.
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As previously reported by Bitcoinist, FTX Trading Ltd. and its affiliated
debtors have confirmed that their court-approved Chapter 11 Plan of
Reorganization would indeed take effect on Friday January 3rd, 2025.
This date has also been designated as the initial distribution record date for
holders of allowed claims within the plan’s Convenience Classes.
Yet, the initial distribution is anticipated to occur within 60 days of this
effective date, contingent upon compliance with know-your-customer (KYC) and
other distribution requirements.
Notably, the initial distribution will focus on the Convenience Classes, with
separate record and payment dates for other classes of claims to be announced
later.
John J. Ray III, CEO of the FTX Debtors, expressed optimism about the progress
made over the past two years. He stated that the recovery efforts have been
meticulous and efficient, with billions of dollars recovered to reach this
point.
Ray emphasized that the plan s effectiveness marks a significant step
forward, allowing for the distribution of recoveries back to customers and
creditors. He encouraged customers to complete the necessary steps for timely
distributions.
For claims that have been transferred, distributions will only be made to the
transferee holder of an allowed claim that is officially recorded by the
Notice and Claims Agent by the January 3, 2025 record date. This is subject to
a 21-day notice period without any objections.
Recovered Funds From FTX Could Flow Back Into Crypto Market• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта
On social media• Коммуникации » Интернет-коммуникации » Интернет-сообщество » Социальные сети, reactions have been mixed. Crypto expert Matrix expressed
skepticism on X (formerly Twitter• Коммуникации » Интернет-коммуникации » Интернет-сообщество » Социальные сети » Х (Twitter)), questioning the credibility of those who
had previously asserted that the $16 billion repayment was imminent. Matrix
sarcastically noted the repeated missed timelines , dubbing the situation a
liar, liar, pants on fire scenario.
Conversely, Sunil, dubbed the FTX Creditor Champion on X,
clarified that repayments would not begin on January 3, 2025.
Sunil highlighted the distribution timeline, indicating that $1.2 billion
would be paid to the Convenience Class within 60 days, with larger claims of
over $50,000 to follow.
Related Reading: Blockchain Adoption Hits New Heights With $10 Trillion
Milestone In 2024 – Details
Despite the uncertainty surrounding the timeline, experts suggest that a
significant portion of the recovered funds could eventually flow back into the
crypto market• Экономика » Финансы » Платежные средства » Платежные системы интернета » Криптовалюта.
With FTX s cash reserves estimated at around $16 billion, along with
additional potential funds from venture capital portfolios and lawsuits, the
implications for the crypto ecosystem could be substantial. The daily chart
shows FTT s price drop on Friday. Source: FTTUSDT on TradingView.com
As of the time this is written, FTT, the native token of the now-defunct
exchange, is priced at $3.59, showing a decline of 6.6% over the last 24
hours.
Featured image from DALL-E, chart from TradingView.com