On October 8, 2024, the United States Bankruptcy Court for the District of Delaware approved FTX's Plan of Reorganization, nearly two years post-collapse. The plan enables 98% of FTX creditors to receive about 119% of their allowed claims within 60 days after the effective date, which is yet to be determined.
FTX anticipates that the total value of property for distribution will range from $14.7 billion to $16.5 billion, encompassing assets from various entities, including the Chapter 11 debtors and the U.S. Department of Justice.
However, analysts at Presto Labs caution that the assumption that creditors will reinvest cash into the crypto market may be premature, as the claimant composition remains largely unexamined.
Despite the approval, the cryptocurrency market experienced a slight downturn. Bitcoin was down 1.9% at $62,300, while Ether fell 2.2% to $2,425. Georgy Slavin-Rudakov from B2BINPAY noted that Bitcoin's dip post-$64,000 is a healthy correction, with a bullish outlook for Q4 potentially reaching $75,000 due to growing institutional interest.
Additionally, while some cryptocurrencies like Solana and Tron have seen significant price increases since FTX's collapse, the liquidation of FTX's substantial holdings in tokens like MAPS and Serum poses challenges that could impact market stability.