Magnet Capital: Some of the FTX repayment funds may flow back into the cryptocurrency market

ChainCatcher news, creditors of the bankrupt cryptocurrency exchange FTX will receive over $12 billion in payments over the next few months according to a court-approved payment plan, increasing the possibility that some cash may be reinvested into digital assets. According to information released by FTX, the group has recovered between $14.7 billion and $16.5 billion, while the total claims from creditors amount to $11.2 billion.

Benjamin Celermajer, Co-Chief Investment Officer of Magnet Capital, stated that the anticipated FTX repayments "are essentially providing liquidity to known cryptocurrency traders. It is very likely that we will see some funds flow back into the crypto market, providing a potential price catalyst for a market that is lacking liquidity." It is worth noting that repayments will not happen immediately; FTX must first establish a trust and hire a company to oversee the fund distribution process.