The FTX bankruptcy, which caused Sam Bankman-Fried to receive a 25-year prison sentence, continues to affect the markets nearly 2 years later. Critical dates are approaching regarding the payments expected to be made to aggrieved investors in the stock market, which went bankrupt in 2022.
Social media rumour created expectation
Especially the accounts with large followers on X ‘FTX payments are starting. $16 billion will enter the crypto market’ style news created expectations in investors. This expectation increased FTT, FTX’s own token, which rose up to $50 for a period, by 115%. FTT price rose from $1.38 to $2.99.
Not 16, but $12.7 billion…
However, when a short research is done, it is seen that these news are not quite true. For example, the amount of payment FTX will make after the approval of the bankruptcy court is not $16 billion, as stated in many tweets and news. According to the information in the court files, the total amount of payments will be $12.7 billion.
However, the payment plan is still not approved. On October 7, a hearing will be held on this issue and the plan will be formalised after the decision here. It was previously decided that the payments would be in cash. Some investors even objected to this and filed a lawsuit against this decision.
Some of the debts were purchased
On the other hand, a significant part of this money has already been paid … Because it is known that there are those who buy debts early and cheaply in such bankruptcy processes. In other words, some of FTX’s official creditors have already transferred their rights to others cheaper, before the court decision has been made… Those who buy rights early and cheaply will profit with the start of real payments.
It appears that about $5.5 billion of debt has already been sold. In fact, it is stated that most of those who bought these debts are not crypto investors and they do not plan to invest in this field with the money they have.
There is a payment at the end of 2024, but…
There are also certain levels in creditor payments. For example, people with receivables under $50 thousand are expected to be paid as of the last quarter of this year, but for creditors over $50 thousand, the work seems to be delayed until 2025. Both parties are expected to receive a total of around 10 billion payments.
It is stated that the remaining payments worth a total of $2.5-3 billion will be spread over 2-3 years.
As a result, the transition of $16 billion in cash to creditors on October 1 is not the right news. Therefore, this amount will not suddenly enter the crypto market.