FTX’s native token, FTT, surged by nearly 50% following unfounded rumors of imminent creditor repayments, spiking to $2.75, its highest since March, before settling at $2.14. Despite this, no court-approved repayment plan exists. The rumors, circulating on social media, falsely suggested that repayments would start by Sept. 30, but Judge John T. Dorsey will not review the restructuring plan until an Oct. 7 hearing.
If approved, smaller claims under $50,000 may see payments by late 2024, while larger claims could take until mid-2025. Sunil Kavuri, representing FTX creditors, debunked the repayment rumors, warning that large accounts were spreading misinformation.
FTX’s repayment plan has drawn further criticism after recent revelations that 18% of proceeds from government forfeitures were earmarked for a special shareholder fund, capped at $230 million—details undisclosed until Sept. 27, after creditors had already voted on the plan. Kavuri estimates that creditors may recover only 10-25% of their assets due to valuation discrepancies, with payouts based on the petition date when Bitcoin was significantly lower in value.
Source: cryptoslate.com
