The crypto community is both excited and skeptical about FTX’s long-awaited $16 billion creditor repayment proposal.
Industry leaders are bragging about the potential of the crypto market to benefit from this repayment as the bankrupt exchange, now run by convicted felon Sam Bankman-Fried, prepares to start making these payments.
Creditors paid $16 billion
Many observers expect that some of the cash payments from the FTX repayment plan will return to the cryptocurrency market, reinforcing the positive trend for the digital asset ecosystem.
The hope is that these flows will create liquidity and increase market activity. Not everyone is optimistic.
As Bitcoinist previously reported, FTX Trading Ltd. and its associated creditors have acknowledged that the court-approved Chapter 11 reorganization plan will go into effect on Friday, January 3, 2025.
If KYC and other distribution criteria are met, the first distribution must occur within 60 days after this effective date.
The first distribution will focus on comfort categories, with registration and payment dates for additional demand categories to be released later.
FTX Creditors CEO John J. Ray III was upbeat about the past two years’ achievements. He said recovery activities have been aggressive and effective, recovering billions of dollars.
Ray stressed that the success of the plan allows consumers and creditors to obtain compensation. He urged customers to complete the distribution stages on time.
Sunil, “FTX Creditor Champion” on X, confirmed that payments will not start on January 3, 2025.
Sunil said the comfort class will receive $1.2 billion within 60 days, followed by larger claims exceeding $50,000.
Although the timeline is not specified, analysts believe that a significant portion of the recovered assets may return to the crypto market.
With FTX's financial reserves estimated at $16 billion plus potential funds from venture capital portfolios and legal disputes, the crypto industry could be affected.
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