After the FTX bankruptcy, a refund of approximately $ 16 billion is expected. It is predicted that this refund process could trigger a rise in the cryptocurrency market. However, on the other hand, the SEC is creating uncertainty by criticizing the payment plan.
The bankruptcy process of the cryptocurrency exchange FTX, which went bankrupt in November 2022, will begin next week. Experts say that this process could be a significant turning point for the cryptocurrency market. Approximately $ 16 billion is planned to be paid back to investors, and this stands out as one of the most curious refund processes in the cryptocurrency world.
The refund process could be a consolation for investors who suffered huge losses as a result of the actions of former CEO Sam Bankman-Fried. The exchange revised its restructuring plan after the collapse, allowing it to offer full refunds to affected investors. The refunds are expected to contribute significantly to Bitcoin’s rally to $65,828 and the buying pressure on altcoins in particular. This wave of payments could be a great opportunity for investors who missed out on opportunities during the August market correction.
Payments are expected to be made after three “omnibus hearings” on October 22, November 20 and December 12, 2024. These hearings will assist all creditors in advancing the overall payment process.
If the Chapter 11 plan is approved by the District of Delaware before Oct. 7, victims could start receiving payments before the end of the year. However, those who fail to file a claim by Sept. 29, 2023, will no longer be eligible for refunds.
A filing in late August revealed a potential complication in the proposed refund process. While stablecoin payments are not illegal, the cryptocurrencies involved could have legal ramifications.
These large returns in the cryptocurrency market are expected to encourage reinvestment from existing investors, meaning there could be significant inflows into leading cryptocurrencies like Bitcoin and Solana, with the final months of the year being a key period.
Investors must submit their requests by the specified date in order to benefit from the refund that FTX will make. It is also important to follow the SEC’s decisions closely during this process.
