There are currently rumors circulating on social media that the FTX bankruptcy fund will begin distributing compensation to creditors and customers on September 30, 2024. However, these rumors are inaccurate, as the compensation plan has not yet been approved by the court.
According to the latest C11 filing, the next hearing to confirm the restructuring plan will be held on October 7, 2024. The hearing will be presided over by Judge John T. Dorsey of the United States Bankruptcy Court for the District of Delaware.
If the plan is approved, claimants seeking less than $50,000 in compensation may begin receiving distributions by the end of 2024. For larger compensation claims, distributions may not occur until the first or second quarter of 2025.
Distribution plan faces opposition from creditors
FTX's creditors, led by Sunil Kavuri, have opposed the restructuring plan on several fronts, including demands to be compensated in kind rather than in cash, and objections to the tax consequences of cash payments.
FTX's lawyers assert that any creditor compensation must be made in cash to avoid conflicts with the current Chapter 11 bankruptcy laws and to facilitate the process. However, the question of cash versus cryptocurrency payments has sparked strong opposition from creditors, who argue that the distribution of existing assets is the only way to ensure that former creditors and customers receive their full entitlements.
The current distribution plan stipulates that creditors will be compensated based on the timing of their legal claims. At that time, the price of BTC was only around $16,000. This means that former creditors and customers will only receive approximately 1/4 of the assets they once owned, according to Sunil Kavuri, an FTX creditor, who shared this information with Cointelegraph.
Impact on the market from FTX's debt repayment
Markus Thielen, the founder of 10x Research, believes that FTX's payouts could be a positive signal for the market.Rumors that FTX will pay creditors on September 30 are false
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Distribution plan faces opposition from creditors
Impact on the market from FTX's debt repayment
There are currently rumors circulating on social media that the FTX bankruptcy fund will begin distributing compensation to creditors and customers on September 30, 2024. However, these rumors are inaccurate, as the compensation plan has not yet been approved by the court.
According to the latest C11 filing, the next hearing to confirm the restructuring plan will be held on October 7, 2024. The hearing will be presided over by Judge John T. Dorsey of the United States Bankruptcy Court for the District of Delaware.
If the plan is approved, claimants seeking less than $50,000 in compensation may begin receiving distributions by the end of 2024. For larger compensation claims, distributions may not occur until the first or second quarter of 2025.
Distribution plan faces opposition from creditors
FTX's creditors, led by Sunil Kavuri, have opposed the restructuring plan on several fronts, including demands to be compensated in kind rather than in cash, and objections to the tax consequences of cash payments.
FTX's lawyers assert that any creditor compensation must be made in cash to avoid conflicts with the current Chapter 11 bankruptcy laws and to facilitate the process. However, the question of cash versus cryptocurrency payments has sparked strong opposition from creditors, who argue that the distribution of existing assets is the only way to ensure that former creditors and customers receive their full entitlements.
The current distribution plan stipulates that creditors will be compensated based on the timing of their legal claims. At that time, the price of BTC was only around $16,000. This means that former creditors and customers will only receive approximately 1/4 of the assets they once owned, according to Sunil Kavuri, an FTX creditor, who shared this information with Cointelegraph.
Impact on the market from FTX's debt repayment
Markus Thielen, the founder of 10x Research, believes that FTX's payouts could be a positive signal for the market.
There are currently rumors circulating on social media that the FTX bankruptcy fund will begin distributing compensation to creditors and customers on September 30, 2024. However, these rumors are inaccurate, as the compensation plan has not yet been approved by the court.
According to the latest C11 filing, the next hearing to confirm the restructuring plan will be held on October 7, 2024. The hearing will be presided over by Judge John T. Dorsey of the United States Bankruptcy Court for the District of Delaware.
If the plan is approved, claimants seeking less than $50,000 in compensation may begin receiving distributions by the end of 2024. For larger compensation claims, distributions may not occur until the first or second quarter of 2025.
Distribution plan faces opposition from creditors
FTX's creditors, led by Sunil Kavuri, have opposed the restructuring plan on several fronts, including demands to be compensated in kind rather than in cash, and objections to the tax consequences of cash payments.
FTX's lawyers assert that any creditor compensation must be made in cash to avoid conflicts with the current Chapter 11 bankruptcy laws and to facilitate the process. However, the question of cash versus cryptocurrency payments has sparked strong opposition from creditors, who argue that the distribution of existing assets is the only way to ensure that former creditors and customers receive their full entitlements.
The current distribution plan stipulates that creditors will be compensated based on the timing of their legal claims. At that time, the price of BTC was only around $16,000. This means that former creditors and customers will only receive approximately 1/4 of the assets they once owned, according to Sunil Kavuri, an FTX creditor, who shared this information with Cointelegraph.
Impact on the market from FTX's debt repayment
Markus Thielen, the founder of 10x Research, believes that FTX's payouts could be a positive signal for the market.
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Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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