By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
KriptotekaKriptoteka
  • Home
  • News
    • Web3
    • Crypto News
    • Market Analysis
  • Market
    • AI
    • Altcoins
    • Bitcoin
    • Blockchain
    • CEX
    • Defi
    • DePIN
    • DEX
    • ETFs
    • Ethereum
    • Gaming
    • ICO/IDO
    • Institutions
    • L1&L2
    • Meme
    • NFT tech
    • RWA
    • Stable coins
  • Data
  • Events
  • Learn
  • Reports
  • Podcasts
  • Pro membership
Reading: FTX Creditors May Only Recover 10%-25% of Their Crypto Assets
Share
Notification Show More
Font ResizerAa
Font ResizerAa
KriptotekaKriptoteka
  • Home
  • News
  • Market
  • Data
  • Events
  • Learn
  • Reports
  • Podcasts
  • Pro membership
  • Home
  • News
    • Web3
    • Crypto News
    • Market Analysis
  • Market
    • AI
    • Altcoins
    • Bitcoin
    • Blockchain
    • CEX
    • Defi
    • DePIN
    • DEX
    • ETFs
    • Ethereum
    • Gaming
    • ICO/IDO
    • Institutions
    • L1&L2
    • Meme
    • NFT tech
    • RWA
    • Stable coins
  • Data
  • Events
  • Learn
  • Reports
  • Podcasts
  • Pro membership
Have an existing account? Sign In
Follow US
  • Advertise
© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
Kriptoteka > Market > Altcoins > FTX Creditors May Only Recover 10%-25% of Their Crypto Assets
Altcoins

FTX Creditors May Only Recover 10%-25% of Their Crypto Assets

marcel.mihalic@gmail.com
Last updated: September 29, 2024 2:51 am
By marcel.mihalic@gmail.com 4 Min Read
Share
SHARE

Creditors of FTX are still optimistic about receiving full restitution after the exchange’s downfall in November 2022. As the restructuring decision approaches, the nature of the compensation remains uncertain.

Anticipated updates in Q4, beginning in October, could lead to fluctuations in the market due to creditor reimbursements.

Update on FTX Creditors Compensation

FTX creditor advocate Sunil Kavuri reports that customers of the exchange may reclaim between 10% and 25% of their crypto assets. This information coincides with the now-defunct exchange reallocating 18% of confiscated funds ($230 million) to equity holders (shareholders), a move that has raised some concerns.

“This is just a rough estimate of what we might receive based on the petition date compared to current value,” the activist stated.

FTX Creditor Update
FTX Creditor Update, Source: Court Documents

Read more: Understanding the FTX Collapse: The Rise and Fall of Sam Bankman-Fried’s Empire

This news arrives with speculation that FTX will start distributing $16 billion to its creditors in October. However, this remains unverified, as the approval of the restructuring plan for customers is still pending court confirmation. A court hearing on this matter is scheduled for October 7.

“The restructuring plan for FTX customers will not be decided until October 7 when the court hearing is set to occur. I have not found any details about whether the repayment will be in crypto or cash, which is significant regarding withdrawals from the cryptocurrency market,” wrote CryptoTrail on social media.

This follows the court’s recent agreement on a $12.7 billion repayment strategy. Nonetheless, the court has prohibited FTX and its associated business, Alameda Research, from trading digital assets and has not imposed any civil monetary penalties.

Additionally, there is ongoing debate about the reorganization plan after a US trustee raised objections, emphasizing the necessity for a fairer distribution among creditors. Prior to the US Trustee’s objection, several FTX creditors, including Sunil Kavuri, also contested the reorganization plan, citing issues such as broad exculpation provisions and a lack of in-kind distribution options for customers.

“It is clear that the proposed plan by the Debtors will impose further challenges on customers due to unnecessary taxation that could be avoided with an ‘in-kind’ distribution,” the creditors contended.

Similarly, the US Securities and Exchange Commission (SEC) has raised concerns regarding the restructuring plan, calling for the removal of the discharge provision and other adjustments. The SEC has committed to contesting the plan’s confirmation if the necessary changes are not made.

Read more: Crypto Regulation: Exploring the Benefits and Drawbacks

Meanwhile, the cryptocurrency market braces for two potential effects. On one side, FTX still possesses over $1 billion worth of Solana tokens amid its liquidation efforts following bankruptcy. As reported by BeInCrypto, this large amount of tokens could impact Solana’s market value.

Conversely, the repayments to customers could usher in a fresh influx of capital, likely directing investments towards Bitcoin and altcoins.

Disclaimer

In compliance with the Trust Project guidelines, BeInCrypto is dedicated to unbiased and transparent reporting. This article seeks to provide accurate and timely information. However, readers are encouraged to independently verify facts and consult with a professional prior to making any decisions based on this content. Please be aware that our Terms and Conditions, Privacy Policy, and Disclaimers have been revised.

You Might Also Like

Bitcoin Dominance Hits 59.2%: Are Altcoins Facing Decline?

Axelar Crypto Surges 43% in October: Cool-Off Ahead?

Bitcoin Expected to Experience One Last Shakeout Soon

Bitcoin Struggles as Tether Faces Probe and Middle East Tensions

Bitcoin Dip Causes Altcoins to Decline Further, Market Cap Drops

Share This Article
Facebook Twitter Email Print
Previous Article Dogwifhat Up 32% Weekly – Is $WIF Heading for New ATH?[embed]https://www.youtube.com/watch?v=_b_lLawrJuk[/embed]
Next Article Top 5 Cryptos to Watch in 2024 for Major Investment Gains
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected

FacebookLike
TwitterFollow
YoutubeSubscribe
TelegramFollow
- Advertisement -
Ad image

Latest News

4 Cryptos to Challenge Solana: Potential Growth for Investors
Defi
Bitcoin ETF Inflows Exceed $3B, Demand Reaches 6-Month Peak
ETFs
Japan’s Push for Bitcoin and Ethereum ETFs Gains Momentum
Institutions
Ripple Appeals Court Ruling on XRP’s Institutional Sales
Meme
//

We influence millions of users and is the number one Crypto and Web3 news network on the planet

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2022 Foxiz News Network. Ruby Design Company. All Rights Reserved.
nl Dutchen Englishfr Frenchde Germanel Greekit Italianpt Portugueseru Russianes Spanish
en en
Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.
Welcome Back!

Sign in to your account

Lost your password?