FTX creditors continue to wait for compensation: Will payments be in crypto or cash? A court ruling on FTX’s restructuring plan is set to be announced on October 7. The cryptocurrency market could be volatile with FTX payments, which could affect Solana and other altcoins. Creditors continue to hold out hope that they will be compensated for their losses since the November 2022 crash, but it is not yet clear how payments will be made.
Further developments are expected for the fourth quarter as October arrives, with creditor payments likely to cause market volatility.
FTX Creditors Compensation Update
According to FTX creditor activist Sunil Kavuri, the exchange’s clients could get back between 10% and 25% of their crypto assets. The update comes as the now-defunct exchange has transferred 18% ($230 million) of the seized funds to its shareholders. However, some find the situation alarming. There are also rumors that FTX will distribute $16 billion to its creditors starting in October, but this has yet to be confirmed, pending court approval. The court hearing is scheduled for October 7.
This comes just two months after the court approved a $12.7 billion restitution settlement. On the other hand, the court banned FTX and its sister organization Alameda Research from trading digital assets but did not impose any civil monetary penalties.
A U.S. trustee has objected to the restructuring plan, citing a need for fairer distribution. Sunil Kavuri and other FTX creditors have also objected to the plan. The dispute centers on the plan’s broad exemption provisions and lack of customer distribution options.
