Rumors have appeared online about the start of payments to FTX creditors

Online information has appeared that the FTX exchange will begin paying creditors on Monday, September 30, 2024. However, according to court filings, this is not the case, as a hearing on the platform’s asset reorganization plan has been scheduled for October 7.

This, in particular, follows from the text fragment below:

Reports that FTX will begin making repayments to creditors and customers on September 30, 2024 are inaccurate, as the compensation plan has not yet been confirmed by the court. pic.twitter.com/zRMoxK83zn

— Fifteenmin (@Fifteenmin_news) September 30, 2024

During the meeting on October 7, the court will consider and then approve or send for revision the plan for reorganizing FTX’s assets. The company introduced it back in May 2024.

It assumes compensation to exchange clients from $14.5 billion to $16.3 billion. According to the document, 98% of affected users will receive 118% of their contribution, the rest – 109%.

However, one of the company’s creditors stated that crypto assets deposited on the platform will be valued at the rate at the time of filing for bankruptcy. Due to this, the actual refund will be between 10% and 25% of the market value of their cryptocurrency.

In addition, an additional clause was added to the plan to increase the share of preferred shareholders in the amount of up to $230 million using previously seized funds.

If the court approves the proposed decision, clients with claims up to $50,000 will be able to receive compensation until the end of 2024, the rest – in the first or second quarter of 2025.

One way or another, experts believe that the start of payments to FTX clients will serve as a catalyst for growth in the cryptoasset market, not a decline. This is because users will receive refunds in fiat rather than in kind.

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