3 hours ago
Bankrupt FTX’s autochthonal FTT token has spiked by astir 50% during the past time amid mendacious rumors of upcoming recognition repayments.
Data from CryptoSlate shows that FTT peaked astatine $2.75—its highest worth since March—but has somewhat retraced to $2.14 arsenic of property time.
This represents a 56% summation implicit the past week and a 71% emergence successful the past month. Additionally, trading measurement for FTT skyrocketed by implicit 1,600%, surpassing $360 million—more than fractional of this enactment took spot connected Binance.
FTT’s spike successful worth is surprising, considering the token’s constricted inferior beyond speculation. However, marketplace observers person attributed the surge to developments successful FTX’s ongoing bankruptcy proceedings.
False repayment rumors
Recent rumors circulating connected societal media falsely suggested that FTX would statesman creditor and lawsuit repayments connected Sept. 30. However, the tribunal has not approved immoderate repayment plan.
According to tribunal filings, Judge John T. Dorsey volition preside implicit the adjacent proceeding connected FTX’s restructuring plan, which is scheduled for Oct. 7.
If approved, claimants with amounts nether $50,000 could statesman receiving payments by precocious 2024. Those owed larger sums whitethorn person to hold until mid-2025.
Sunil Kavuri, an FTX creditors’ representative, besides debunked the rumor and reiterated that repayments beryllium connected the court’s support of the restructuring plan. He stated:
“Large accounts [are] spreading false accusation [that] FTX organisation has started and/or commencement connected 1st Oct etc and $16 cardinal inflow.”
FTX repayment plan
Meanwhile, FTX’s projected repayment program continues to look absorption from creditors, particularly aft caller accusation astir the firm’s program for its shareholders has emerged.
According to a tribunal filing, FTX’s debtors allocated 18% of proceeds from government forfeitures to a peculiar money for prime shareholders, capped astatine $230 million.
This arrangement, made connected Aug. 28, was not disclosed until Sept. 27, the last time for the property to record the amended plan. Notably, FTX creditors, unaware of this provision, had already voted successful favour of the program by the Aug. 16 deadline.
This quality sparked sizeable outrage among FTX creditors. Kavuri pointed out that creditors mightiness lone retrieve 10-25% of their assets owed to the firm’s program to basal its payouts connected the petition day valuation.
According to him:
“[This is] a speedy estimation of however overmuch petition day is going to wage america vs. existent worth e.g BTC [was] 16k [as of petition date] vs.[its existent terms of] 65k.
The station FTX creditors misled arsenic token worth jumps 50% connected repayment rumors appeared archetypal connected CryptoSlate.
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