FTX to pay customers $12 billion in the coming months, courtesy of a court-approved payout plan.
A prominent market figure has explained that recipients are likely to put funds back into the crypto market.
New inflows are expected to trigger long-term liquidity for crypto traders.
FTX customers will start to receive more than $12 billion in payouts. In a payout plan approved in court, the exchange must credit its former customers in the coming months.
This is good news for customers, whose digital assets have been locked in the exchange since it collapsed. According to a note from Alex Thorn, the Head of Research at Galaxy Digital Holdings, an initial $1.1 billion disbursement, though small, will help Bitcoin.
The company’s asset holdings haven’t been fully recovered. However, the initial $12.6 billion promised to customers back in June, could increase to $16.5 billion once the recovery process is completed.
Market players like Benjamin Celermajer, the co-chief investment officer at Magnet Capital, said that the payouts could boost liquidity for major crypto traders. Celermajer thinks the money might flow back into the cryptocurrency market. If th…
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