bullish

when

<ul>
 <li>FTX has outlined a repayment plan to reimburse creditors and customers, with final arrangements by January 2025 and initial payouts beginning in March 2025.</li>
 <li>The announcement of the repayment plan has sparked a resurgence in the market value of FTT, the exchange’s native token.</li>
</ul>
The FTX bankruptcy estate today <a href="https://www.prnewswire.com/news-releases/ftx-provides-update-on-upcoming-timeline-for-creditor-and-customer-distributions-302313274.html" target="_blank" rel="noopener noreferrer nofollow">announced</a> its plans to reimburse creditors and former customers. The timeline for payouts is now set, with final arrangements expected to conclude by January 2025. As per the announcement, initial disbursements are slated to begin in March 2025, offering a much-awaited resolution for those affected by the exchange’s collapse.
Reminiscing, FTX, a major cryptocurrency exchange, filed for Chapter 11 bankruptcy on November 11, 2022. This occurred after a liquidity crisis triggered by a run on the exchange following revelations about its financial mismanagement and ties to the sister company Alameda Research.
Per the announcement released today, FTX outlined its roadmap for repayments. As per the report, preparations will kick off in early December as the estate coordinates with distribution agents who will manage the payout process and oversee the customer reimbursement portal. John J. Ray III, the interim CEO leading the bankruptcy proceedings, emphasized the estate’s commitment:
<blockquote>
 While we continue to take actions to maximize recoveries, we are full steam ahead to reach arrangements with our distribution agents and return proceeds to creditors and customers as quickly as possible.
</blockquote>
Despite these <a href="https://www.ethnews.com/ftx-creditors-could-face-delays-as-sec-probes-repayment-plan/" target="_blank" rel="noopener noreferrer nofollow">plans and efforts</a>, the repayment plan hasn’t been without controversy. October saw a U.S. Judge approve the FTX reorganization plan, however some creditors remain dissatisfied due to&nbsp;the payout amounts being calculated per the petition date, when digital asset prices were much lower than currently.
In October, the FTX estate launched a series of lawsuits aimed at reclaiming funds allegedly owed to the bankruptcy estate and at the same time maximizing the estate’s recoveries.
Firstly, in October, FTX sued KuCoin to recover %50 million in assets locked since the exchange’s collapse. Similarly another lawsuit was filed targeting Crypto.com seeking $11 millions in funds.
Not only did the crypto exchange file against crypto exchanges but also prominent figures. In this case, FTX filed a case against Anthony Scaramucci and Skybridge Capital, attempting to recoup 100 million spent on sponsorships and investment deals involving <a href="https://www.ethnews.com/allegations-of-illicit-political-donations-engulf-ftx-founders-family/" target="_blank" rel="noopener noreferrer nofollow">former CEO SBF</a>.
Additionally, Binance and its former CEO Chaopeng Zhao are under scrutiny, with the FTX estate seeking $1.8 billion over alleged fraudulent transfers made before the exchange’s demise.
The <a href="https://www.ethnews.com/ftx-prepares-for-massive-client-payouts-potentially-boosting-crypto-market-in-q4/" target="_blank" rel="noopener noreferrer nofollow">repayment timeline</a> has reignited hope among FTX creditors and former customers, many of whom have faced prolonged uncertainty since the exchange filed for bankruptcy in 2022.
With the announcement of the repayment plan,&nbsp; the exchange’s native token FTT has seen a resurgence on its market value. In fact, with the current bullish streak, the digital asset is potentially eyeing a 52 week high.
At the time of writing, FTT is swapping hands $2.64 marking a 39.93% surge in the past 24 hours. Additionally, its market cap has seen a 27.86% surge stopping at $868.56M.
The post <a href="https://www.ethnews.com/ftx-creditor-repayment-plan-sparks-ftt-price-surge-could-5-be-next/" rel="noopener noreferrer nofollow">FTX Creditor Repayment Plan Sparks FTT Price Surge: Could $5 Be Next?</a> appeared first on <a href="https://www.ethnews.com" rel="noopener noreferrer nofollow">ETHNews</a>.

FTX Creditor Repayment Plan Sparks FTT Price Surge: Could $5 Be Next?

ETHNews

Other articles published on Nov 22, 2024

AI Answer Generator: Revolutionizing Information Retrieval

Mercado Bitcoin Launches MBRL Stablecoin Pegged to Brazilian Real on the TRON Blockchain

Rune Swaps Beta Goes Live on Magic Eden

Whale 0x373 Makes Bold Moves with $EIGEN Acquisitions

Crypto Leaders Push for a Seat on Donald Trump’s Advisory Council

3 XRP Rivals Set to Skyrocket: SHIB, DOGE, and ADA Showcase Unparalleled Potential

Join our free newsletter for daily crypto updates!