FTX has started its repayment plan, but almost every type of FTX creditor is under significant stress, as they are either receiving their money much later or receiving far less in amount.
FTX was once a highly popular crypto trading platform but collapsed disastrously when it was revealed that the FTX leadership was not properly holding customers’ funds. Currently, FTX’s former CEO, SBF, who was mainly responsible for the downfall of the exchange, is in jail and facing a 20-year sentence. Recently, his representatives filed in court to reopen the case, claiming that the court judges and media had already declared SBF, the co-founder, guilty without properly reviewing the evidence. SBF’s lawyers argued that he was not allowed to present evidence in the FTX fraud case.
According to the latest FTX bankruptcy filing, the next court hearing to confirm the reorganisation plan is scheduled for October 7, 2024. If the plan is approved, creditors with claims under $50,000 may begin receiving compensation by the end of 2024. Creditors with larger claims may not see payments until the first or second quarter of 2025.
In the last 24 hours, many crypto influencers claimed that FTX was going to release funds back to creditors by October 1, which turned out to be completely false.
An FTX creditor, Sunil , noted that top crypto X users are spreading misinformation regarding the FTX repayment plan. He also pointed out that 70% of FTX creditors are those who have claims exceeding $50,000. This individual believes it may take nearly two to three years to complete the compensation plan, as court approval is still far from the scheduled date.
Recently, we reported that the same FTX creditor mentioned that the FTX bankruptcy leaders revised their repayment plan. Using questionable tactics, they are now planning to release only 10% to 25% of the funds back to many FTX creditors.
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