Based on the report, they owe a total of $11.2 billion to creditors, while they’ve recovered between $14.5 billion and $16.3 billion.

Looking at these numbers, it seems like they haven’t really started disbursing payments before, and I haven’t read any reports of anyone receiving payouts yet, so this might be the first and possibly the final distribution.

https://apnews.com/article/ftx-crypto-bankman-fried-creditor-6365ceb2565deb891da9b268db94b7a8

Wow this is huge! I am sure a lot of folks will be taking profits but we will see what kind of impact it has on the market in a few months time. If there are crazy outflows and it drives the price down a little but it will just be some normal volatility for a while and then the price will probably continue to go back up at that time. Around that time hopefully the US will also make a monster purchase of Bitcoin and maybe we see new a time highs!

Thanks for providing proof, it clarifies the matter. But since the initial refund was small, it didn’t create much buzz. However, this time, it’s the biggest refund yet, and as expected, it could have a positive impact on the market. Since this isn’t BTC being refunded, there won’t be any major dumps happening.

Could this be one of the reasons why the market is going down? I believe it can be because a lot of people have been really waiting for this and just want to get done with crypto. I know some people who were affected by this and just didn’t want to be in the cryptocurrency market because of their negative experiences.

A lot of people might be sending this once they receive their payout.

Every time I see something about this FTX distribution it is different than the last news. It would be nice if we got some fresh powder dumped on the market before more people panic sell to Blackrock. Hopefully this isn’t another mtgox situation where these people will still be waiting for their funds in a decade.

Paid in cash so, not really.

But every time that there's a news like this, it could be a market mover so if it's about the possibility of the reasons. There is a chance but we can't be sure if this is the actual reason why the market is bleeding.

I'm expecting that we shall see the rally by that time when the payment is released.

It should be a positive factor because statistically at least some of that money will go back into bitcoin. If you had an investment and the holder of that investment went bankrupt, this doesn't mean you'll be done with the asset. Personally, I'd get scared at first, then probably for the first few months until it was not clear that they will claw back any funds I'd most likely feel depressed and say goodbye to the money, and then being actually given some of it back, I'd put it back to work.

It's possible some of the debtors will be bankrupt by then and have loans to pay. These people will use FTX repayments to get back on their feet. Those who are in a stable condition will most likely still buy cryptocurrencies, especially since they can safely get into Blackrock ETF.

The Mt Gox disbursement to affected investors has not been straightforward. The trustee kept postponing the repayment several times because it started happening last year. I guess some investors might have died before the money started coming in. So I commend the handlers of FTX asset recovery and repayment process led by the new CEO, John Ray III. Hopefully, everyone who lost money will get it back.

And some died owed to the stress brought by this fallout. I guess very few can actually get their refunds. Then, for sure the entity holding such huge amount of money will be the one benefiting from it.
For the documented creditors with high amount owed by this company, I believe, they will refund them first.
But why it is up until now, they haven't disbursed them yet? It was said last year that they will start distributing this Jan 2025, and yet, we are already in April and no news yet of the distribution. Creditors are expected to get about 119% of their claim though. But for small holders in the defunct exchange, I believe, you need to wait longer than these big time creditors.

https://www.cnbc.com/2024/10/07/ftx-bankruptcy-judge-approves-more-than-14-billion-payback-plan.html