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.

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.
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