US Bankruptcy Judge Approves FTX Reorganization
Judge John Dorsey of the US Bankruptcy Court for the District of Delaware authorized the proposal on Monday.
That arrangement will provide 98% of FTX creditors at least 118% of their claim in cash.
If FTX creditors promptly reinvest their proceeds, crypto markets might see a rush of fresh money.
Crypto Rover examined the $18.3 billion in Bitcoin ETF net inflows since 2024 and the FTX claim distribution.
In another tweet, he predicted a fresh bull market for Bitcoin after its consolidation.
Finale of FTX Saga
Two years of asset recovery and settlements followed FTX's November 2022 collapse before its bankruptcy plan was approved.
The FTX scam led to the 25-year jail term of former CEO Sam Bankman-Fried last year.
FTX deceived investors by mixing money with Bankman-Fried's multibillion-dollar crypto hedge firm Alameda Research.
FTX claimants will get 118% of their claim in cash, although many will receive far less than their crypto's worth.
Not all claimants approved of the idea, despite 94% voting yes.
The biggest group of creditors, represented by Sunil Kavuri, opposed the idea, claiming claims should be compensated in cryptocurrencies rather than cash based on the claim's worth at FTX's bankruptcy filing.
A lawyer for several claimants indicated they would pay a large tax burden if compensated in cash instead of bitcoin.
Will FTT Token Return?
FTT has been rising despite Judge Dorsey's Monday ruling that the token's value should be zero.
The former FTX exchange's utility token was FTT. TradingView shows it rose 20% to $3.0, a 2x increase from 8 days ago.
FTT rises following FTX bankruptcy approval.
If Dorsey is correct, it's a bad investment.
He remarked, “I have no evidence today that the value of FTT tokens would be anything other than zero.”
FTT has a $1 billion market valuation, therefore it may fall.
However, it may have become a “meme coin” by now, which might help it sustain long-term value as Terra's LUNC token did.
#FTX #FTT #U.S.UnemploymentNewLow $FTT
