The bankruptcy process of FTX, the cryptocurrency exchange that went bankrupt in November 2022, will begin next week. According to most experts, this process may be an important turning point for the cryptocurrency market. Approximately 16 billion dollars are planned to be repaid to cryptocurrency investors, and this is seen as one of the most curious repayment processes in the cryptocurrency world.
Return Process to FTX Begins: Important Dates for Creditors
The payback process could be a salve for the long-lasting effects of the famous crash, in which many investors suffered huge losses due to the actions of former CEO Sam Bankman-Fried. In response to the crash, the stock market revised its restructuring plan and offered full refunds to affected investors.
$16 Billion Refund Could Trigger Big Surge
The refunds in question are Bitcoin $65,693 and is expected to significantly increase buying pressure, especially in altcoins. This payout wave could be a great opportunity for investors who missed the investment opportunity during the August market correction.
Payments are expected to be made after three “omnibus hearings” on October 22, November 20 and December 12, 2024. These hearings can help move the overall payment process forward to all creditors.
If the Chapter 11 plan is approved by the District of Delaware before October 7, victims’ payments could begin before the end of the year. Unfortunately, those who do not claim by September 29, 2023 are no longer eligible for refunds.
A filing in late August showed a potential complication in the proposed reimbursement process. Accordingly, while stablecoin payments are not necessarily illegal, the cryptocurrencies involved may have legal consequences.
It is thought that these large refunds in the cryptocurrency market may trigger existing investors to reinvest in the market. This has led to expected significant flows into leading cryptocurrencies such as Bitcoin and Solana, and the final months of this year could be an important period to watch.
In order to benefit from FTX’s refund, investors must ensure that their requests are made by the specified date, and the SEC’s decisions must be closely followed in this process.
Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that crypto currencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
