FTX’s Multi Billion-Dollar Distribution Plan Is Approved. Here’s How It Will Impact the Crypto Market
Posted October 7, 2024 at 4:21 pm EST.
A US bankruptcy court approved the reorganization plan of bankrupt crypto exchange FTX on Monday, meaning that between $14.7 billion and $16.5 billion in recovered assets are set to be distributed to FTX creditors.
Many investors have been expecting that those distributions would lead immediately to increased demand and higher cryptocurrency prices as creditors used their recovered funds to re-invest in digital assets. The reality is much more complex however.
The approval of the reorganization plan by US Bankruptcy Judge John Dorsey doesn’t immediately turn on the spigot of distributions, according to Kyle, an advocate for FTX creditors…
