FTX: the crypto-exchange will not pay refunds to creditors on September 30

Rumors on social media claim that the failed crypto-exchange FTX will start paying refunds to creditors on September 30, but this is not the case. Currently, the hearing on the approval of the restructuring plan scheduled for October 7 is still awaited. 

FTX: the crypto-exchange does not start paying refunds to creditors on September 30

On social media, the rumors claiming that the failed crypto-exchange FTX will start paying refunds to creditors from today, September 30, are false. 

In fact, during the weekend many tweets circulated on X like the one from the Crypto Rover account, which states that FTX will start redistributing the 16 billion dollars to its creditors from today. 

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https://twitter.com/rovercrc/status/1839925006379418039?ref_src=twsrc%5Etfw” rel=”nofollow noopener” target=”_blank

“FTX will start distributing 16 billion dollars to its creditors starting next Monday. Most of this liquidity will return to #Bitcoin and #Altcoin. You are not bullish enough.”

Unfortunately for the creditors, however, this is not the reality of the facts. In fact, the updated documentation on Chapter 11 has also been revealed, which sees the next hearing for the confirmation of the FTX restructuring plan on October 7, 2024. 

The same account on X will have noticed the mistake made, correcting itself this very morning:

https://twitter.com/rovercrc/status/1840624281903148

“BREAKING: The FTX Tribunal hearing is on October 7 for the hearing to confirm the FTX distribution request.”

This means that before the creditors see their repayment payments, they will have to wait a little longer. 

The hearing on October 7 will be presided over by Judge John T. Dorsey of the United States Bankruptcy Court for the District of Delaware.

FTX: revealed the dates for the repayment plan to the creditors of the failed crypto-exchange

The repayment plan to the creditors of the failed crypto-exchange FTX first sees approval through a court hearing, specifically on October 7, 2024.  

If the Chapter 11 restructuring plan of FTX is approved, then the road towards the beginning of the refunds will start. 

Specifically, the payments should occur following additional hearings scheduled for October 22, November 20, and December 12, 2024.

Not only that, from what has emerged, the distributions of refunds will begin within 60 days from the entry into force of the plan, but only for those who request an amount less than 50,000$. 

On the contrary, those who request refunds of a larger amount will have to wait until the first quarter of 2025 to receive them. 

There are those who argue that the payment of FTX could be a bullish catalyst for the markets. This is because the reimbursement could cause an influx of capital from 5 to 8 billion dollars into the market, creating demand and driving prices up.

The sentence to Caroline Ellison of 2 years in prison

Regarding the collapse of the crypto-exchange FTX, recently, the sentence for Caroline Ellison, former CEO of Alameda Research, was issued, condemning her to two years in prison.

Not only that, Ellison will have to give up the approximately 11 billion dollars earned with the platform. 

This is a more than lenient sentence, given that it is well known that Ellison was facing up to 110 years in prison for her crimes. 

To reduce his sentence so considerably, it was his cooperation with the prosecution in the case against Sam Bankman-Fried, former CEO of FTX, as well as his alleged boyfriend.