FTT Token

bullish

United

Token

Impact

<p>A proposed reorganization plan for the bankrupt cryptocurrency exchange FTX has received overwhelming support from 94% of creditors who were clients of the FTX.com offshore exchange, also known as the Dotcom creditors. According to restructuring agent Kroll, these creditors represent about $6.83 billion in claims. The plan aims to return 118% of claims in cash to the majority of the creditors.</p> 
<p>While two classes of creditors did not submit ballots, they are assumed to have accepted the plan, per Kroll’s report. With this significant backing, the next step will be for the bankruptcy court to review and confirm the reorganization plan during a hearing scheduled for October 7.</p> 
<h3 id="rumors-about-september-30-distribution">Rumors About September 30 Distribution</h3> 
<p>Rumors have been circulating on social media that the FTX bankruptcy estate would begin distributing reimbursement funds to creditors and customers on September 30. However, these rumors are false, as the reimbursement plan has not yet been approved by a court. According to the updated Chapter 11 filing, the next court hearing to confirm the plan is set for October 7, overseen by Judge John T. Dorsey of the United States Bankruptcy Court for the District of Delaware.</p> 
<h3 id="distribution-timeline-and-potential-delays">Distribution Timeline and Potential Delays</h3> 
<p>If the reorganization plan is approved, claimants with claims under $50,000 could start receiving payments by the end of 2024. However, those with larger claims may have to wait until the first or second quarter of 2025 to see any distributions.</p> 
<h3 id="opposition-to-distribution-plan">Opposition to Distribution Plan</h3> 
<p>Despite strong overall creditor support, there has been some opposition to the distribution plan, particularly from a group of creditors led by Sunil Kavuri. These creditors have raised objections on several grounds, including a preference for in-kind asset compensation rather than cash and concerns over the taxable event that cash payouts would trigger. However, FTX’s attorneys argue that payments must be made in cash to comply with Chapter 11 bankruptcy laws, which could delay and complicate the process.</p> 
<p>The current distribution plan stipulates that creditors will be reimbursed based on the value of assets as of the date the legal petition was filed. At that time, Bitcoin was priced around $16,000, which means that creditors could receive only about a quarter of their original crypto holdings if paid out in cash. This issue has sparked intense debate, with some creditors believing that in-kind distributions of crypto assets are the only way to fairly compensate them for their losses.</p> 
<p><img decoding="async" src="https://s3.cointelegraph.com/uploads/2024-09/01923ece-407c-763f-b975-a5ccc88ca612" alt="01923ece 407c 763f b975 a5ccc88ca612" title="Could We See an FTX Comeback? Creditors Strongly Support Reorganization Plan 14"></p> 
<h3 id="potential-market-impact-of-ftx-payout">Potential Market Impact of FTX Payout</h3> 
<p><a href="https://mail.10xresearch.co/p/bitcoin-set-to-smash-new-all-time-highs-in-q4-2024" rel="nofollow noopener" target="_blank">According</a> to Markus Thielen, founder of 10x Research, the reimbursement payments from FTX may serve as a bullish catalyst for the cryptocurrency markets. He predicts that the payout could result in a $5 billion to $8 billion capital inflow into the market, which could drive up demand and potentially push prices higher.</p> 
<h3 id="ftt-token-sees-bullish-action-amid-rumors">FTT Token Sees Bullish Action Amid Rumors</h3> 
<p>The native cryptocurrency of FTX, <a href="https://crypto.ro/en/cryptocurrencies/ftx-token/">FTT</a>, surged by more than 70% on September 29, hitting multimonth highs of $2.70, according to CoinGecko data. This spike came amid rumors that the FTX bankruptcy estate was set to begin distributions on September 30. However, these rumors were unfounded, as the bankruptcy plan is still awaiting court approval.</p> 
<p><img decoding="async" src="https://s3.cointelegraph.com/uploads/2024-09/01924285-3bab-7632-b367-55db35e96d01" alt="01924285 3bab 7632 b367 55db35e96d01" title="Could We See an FTX Comeback? Creditors Strongly Support Reorganization Plan 15"></p> 
<p>Despite the subsequent correction, FTT remained up by approximately 30% on September 30, trading around $2.10, reflecting increased market interest ahead of potential future distributions.</p>

Could We See an FTX Comeback? Creditors Strongly Support Reorganization Plan

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