Reasons Why FTX Refunds Will Not Be Issued Today

Bittime - FTX users hoping to get a refund will have to be patient, as the eagerly awaited payment will not be made on September 30th. 

This is due to the need to obtain court approval of the company's reorganization plan, with the next hearing scheduled for October 7.

FTX Reorganization Process

After filing for bankruptcy in November 2022, FTX underwent a complicated process to improve its financial condition. After CEO Sam Bankman-Fried stepped down, John Ray III was appointed to lead this process. 

On May 7, 2024, FTX filed a reorganization plan under Chapter 11, revealing that it owed approximately $11.2 billion to customers. The company estimates it can return between $14.5 billion and $16.3 billion to creditors.

Also read: Latest Hamster Kombat Roadmap, There will be NFT in the Game

John Ray stated that they are committed to returning 100% of the claim amount submitted by non-government creditors, including interest. However, despite rumors on social media regarding a possible payout in late September, FTX cannot begin the refund process before the plan is approved by the court.

Waiting for Court Hearing

The upcoming court hearing, presided over by Judge John T. Dorsey, will take place on October 7. Creditors must wait until then to receive certainty regarding the return of their funds. 

If the court approves the reorganization plan, creditors with claims under $50,000 may receive refunds before the end of the year.

Potential Impact on the Cryptocurrency Market

Some analysts see positive prospects in the cryptocurrency market as FTX payouts could reach more than $16 billion. Some believe that after receiving the funds, creditors will re-enter the market, potentially increasing liquidity and trading activity. 

Analysis from several experts shows that the return of these funds could encourage investors to reinvest, which would have a positive impact on the cryptocurrency ecosystem as a whole. 

In the broader market context, the potential for policy changes from the Federal Reserve could also be a factor supporting positive movements in the crypto market.

Conclusion

While there is hope for a FTX refund, the reality is that users will have to wait until the court gives its approval on October 7. This process is crucial in determining when and how funds will be returned. 

Meanwhile, market attention is riveted to this development, with many hoping that the refund will fuel further growth in the cryptocurrency sector.

How to Buy Crypto on Bittime

Want to trade sell buy Bitcoins and crypto investment easily? Bittime is here to help! As an Indonesian crypto exchange officially registered with Bappebti, Bittime ensures every transaction is safe and fast.

Start with registration and identity verification, then make a minimum deposit of IDR 10,000. After that, you can immediately buy your favorite digital assets!

Check the exchange rate BTC to IDR, ETH to IDR, SOL to IDR and other crypto assets to find out today's crypto market trends in real-time on Bittime.