Journalist
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Key takeaways
What’s going on with FTX?
FTX will distribute $1.6 billion on the 30th of September, though it’s slightly less than the $1.9 billion first promised.
Could this cause an altcoin rally?
Possibly. With the Altcoin Season Index at 86, fresh liquidity could fuel rallies if funds flow back into crypto.
FTX is back in the headlines.
Creditors are getting a slice of their money back, and the timing couldn’t be better. A $1.6 billion payout is set to land just as we watch for the next big move.
How this would impact the market remains to be seen.
$1.6 bln on the way, but not the full promise
FTX Recovery Trust said it will roll out about $1.6 billion in reimbursements to creditors on the 30th of September as part of its third distribution.
The payouts will go to eligible claim holders who’ve cleared requirements like KYC, tax forms and onboarding with providers such as BitGo, Kraken or Payoneer.
Source: PR Newswire
Customers were informed to expect funds within 1-3 business days. While it’s a hefty sum, it falls short of the nearly $1.9 billion initially promised, leaving some creditors with less than they anticipated.
Source: X
Still, with cumulative recovery rates climbing as high as 95% for certain classes, the relief will perhaps be meaningful.
Source: X
SBF readies appeal in November
Sam Bankman-Fried (SBF), sentenced to 25 years in prison earlier this year, plans to appeal his conviction in November – just after this payout.
In 2023, a jury convicted him on seven counts, including wire fraud and money laundering conspiracy.
Judge Lewis Kaplan called the FTX collapse a “serious” crime that warranted a harsh sentence.
However, SBF’s attorneys argue that the court treated him as guilty from the outset and maintain that FTX was never truly insolvent, claiming the exchange always had enough funds to meet its obligations.
This appeal marks his final chance to challenge the verdict and reshape the public narrative.
All this fresh liquidity…
FTX’s $1.6 billion payout could give altcoins a serious push. In past cycles, creditor reimbursements have caused retail optimism and caused quick rallies across the market.
At press time, the Altcoin Season Index stood at a high 86, indicating favorable conditions for a potential breakout, provided market sentiment turns bullish.
Source: Coinglass
Still, whether this round of payouts turns into a full-blown run depends on how much of that cash actually finds its way back into crypto.
