FTX is expected to distribute $16 billion to creditors in Q4, and the hearing on October 7 may determine whether the plan can be implemented as scheduled

2024-09-29 12:14:44

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ChainCatcher news, according to Forbes, FTX is set to return $11-16 billion to creditors in the fourth quarter of 2024, which could provide significant benefits to the cryptocurrency market (especially Bitcoin, SOL, and Solana network cryptocurrencies). While the exact date is still unclear, FTX has proposed that the distribution will occur within 60 days after the restructuring plan takes effect.

Currently, the next hearing regarding the restructuring plan is scheduled for October 7. If approved, FTX will have 60 days to distribute assets to creditors, meaning the returned cash could reach previous cryptocurrency buyers sometime before December 7. A large portion of this cash may remain within the cryptocurrency ecosystem, as creditors reinvest the funds into their favorite tokens or ETFs.

Nevertheless, there are still some risks that could undermine this positive event. First, court delays could further extend the date for the return of funds. Additionally, some FTX creditors are currently dissatisfied with the settlement plan (which only includes cash returns).

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FTX creditors distribution of funds

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