Bullish Signal for the Market?

• FTX may start repaying creditors in October.
  
• Creditors could get between 10% and 25% of their crypto during the FTX repayment.
  
• FTX transferred 18% of the DOJ forfeiture funds to equity holders.
  

There are unconfirmed reports that FTX, the bankrupt crypto exchange, will start paying its creditors in October. From widespread expectations, the repayment plan could be approved when FTX’s proposed restructuring program gets the nod from the court on October 7.

Some FTX creditors, including an acclaimed activist, Sunil Kavuri, expect the exchange’s customers to get between 10% and 25% of their crypto back. Kavuri noted his expectations after spotting a recent move by FTX, where the defunct crypto exchange transferred 18% of the DOJ forfeiture funds, amounting to about %230 million, to equity holders. 

Although Kavuri and other creditors are making scientific guesses as to when and how FTX would execute the proposed settlement of customers, none of the creditors are certain about the failed exchange’s programs. Some affected by the issue think the situation will remain unclear until after the court’s decision on October 7.

One such creditor is a crypto user on X identified as CryptoTrail. In a recent post, CryptoTrail warned his fellow FTX creditors against rumors that the crypto exchange would start payment next week. The renowned crypto educator noted that only the court will determine the repayment schedule, which would not happen until after the October 7 hearing.

Meanwhile, CryptoTrail told his followers that the FTX repayment mode is unknown but remains crucial in the context of withdrawals from the crypto market. He insisted that any information claiming FTX would start repaying customers before October 7 is unfounded and should be disregarded.

In the meantime, crypto analysts are checking the potential impact of the FTX repayment on the crypto market. Although such repayments, under normal conditions, could result in users selling off reclaimed assets, the current market conditions could lead to a contrasting outcome. 

With the market posing a bullish outlook, users may consider the opportunity of reinvesting the reclaimed funds, thereby increasing the bullish momentum in the market while setting up more gains. However, everything depends on the upcoming court ruling and how much the bankrupt crypto exchange would repay its creditors.