Rumors circulating on social media about the FTX bankruptcy process suggest that creditors and customers will be repaid on September 30, 2024. However, these rumors are false; the repayment plan has not yet been approved by the court. According to the updated Chapter 11 filing, the next hearing to approve the restructuring plan is scheduled for October 7, 2024. If approved, claims under $50,000 could be paid by the end of the year, while larger claims could wait until the first two quarters of 2025.

FTX creditors oppose the plan for several reasons. Lawyers argue that the repayments should be made in cash. However, creditors are demanding payment in crypto assets. This conflicts with current Chapter 11 bankruptcy laws.

The impact on markets is unclear. 10x Research founder Markus Thielen thinks the repayment could inject $5 billion to $8 billion into the markets and boost prices. Share your thoughts in the comments.