As far as I know, the $16 billion that FTX will use to pay creditors is expected to include both cash (USD) and crypto assets that FTX currently holds. During bankruptcy, repayments are usually made based on the total value of the company's assets, including cash and crypto assets.
The specific details between the ratio of USD or crypto payments will depend on the agreement between the company and its creditors as well as the value of the assets at the time of liquidation.
Currently, it is just a rumor, it is not certain how the court will decide, I will continuously update until there is accurate information.