FTX creditors, who have been anxiously waiting for their funds since the platform’s dramatic collapse in November 2022, may be in for a rude awakening. According to creditor activist Sunil Kavuri, the numbers are looking bleak: creditors could see just 10-25% of their funds returned, sparking concerns over how this will all shake out.
The buzz comes ahead of the October 7 court hearing, which is set to determine whether creditors get paid in crypto or cold, hard cash. For some, the payout will feel like a sprinkling of breadcrumbs as FTX shifts $230 million to equity holders. Kavuri wasn’t shy about voicing his skepticism, saying, “This is just a rough estimate,” with the restructuring process throwing more question marks into the mix.
While rumors swirl about FTX potentially dishing out a staggering $16 billion to creditors, the plan faces strong resistance. From unfair distribution complaints to concerns about equity holders getting preferential treatment, this case is proving to be as chaotic as the collapse itself. Oh, and did we mention the SEC has also jumped in with a few choice words? They’re not thrilled either, demanding the removal of broad exculpation clauses and pushing for a fairer deal.
FTX holds over $1 billion in Solana tokens, and any liquidation could send shockwaves through the market, tanking the token’s value. Meanwhile, if payments do start flowing, expect Bitcoin and altcoin prices to take off—because why not throw more chaos into the mix?
Creditors and crypto enthusiasts are holding their breath, waiting to see whether this court date will deliver any relief or just stir up more market volatility. The outcome? It could set the stage for future crypto insolvency cases—so yeah, no pressure. Everyone’s hoping for clarity, but with all this uncertainty, it feels like anything could happen.
Disclaimer:
FOMODigest strives to provide accurate and impartial reporting. The information in this article is for informational purposes only and should not be considered financial or legal advice. Due to the dynamic nature of the market, we encourage readers to conduct their own research and consult professionals before making any financial decisions.
