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FTX Creditors to Receive Billions in Repayments, Yet Controversy Lingers

source-logo  coinedition.com 09 July 2024 18:40, UTC

The FTX customer repayment saga continues to unfold, with a recent update from crypto influencer MartyParty catching the attention of his 96.9K followers.

FTX Creditors will receive $14b-$16b in cash in October through November and will buy back in.

Bullish. @FTX_Official #FTX pic.twitter.com/cfBYLjykci

— MartyParty (@martypartymusic) July 9, 2024

Earlier today, he revealed that FTX creditors are expected to receive a cash payout of $14 billion to $16 billion in October and November. While the platform plans to buy back the funds, MartyParty sees this as a positive sign for the crypto market, citing it as a “bullish” indicator.

Since FTX’s collapse in 2022, customers have been eagerly awaiting their refunds. In May 2024, the platform filed a Reorganization Plan, aiming to compensate affected customers with between $14.5 and $16.3 billion.

FTX, working alongside several U.S. agencies, began liquidating its assets to raise the necessary funds. With the court’s approval of FTX’s liquidation plan, the platform has now revealed the potential creditor reimbursement.

However, not all customers are satisfied with the plan, arguing for greater compensation due to the significant growth of cryptocurrencies since FTX’s collapse. BitGo CEO Mike Belshe strongly disagrees with FTX’s plans, stating:

“I get why the bankruptcy process needs to work this way, but let’s not pretend victims are getting their money back or that FTX wasn’t as bad as it was.”

Reports indicate that the recovered assets consist of misappropriated customer funds invested in various sectors, including tech companies, venture funds, and real estate. The recovered funds are valued at roughly $16 billion, with nearly $12 billion in cash.

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