FTX Begins Distributing $1.2 Billion to Creditors Today
FTX creditors are set to recover 120% of their funds, driven by a unique outcome in bankruptcy proceedings where unsecured creditors typically see much lower recovery rates. Key points include:
- Payments initiated for creditors with claims under $50,000.
- Kraken has credited accounts on schedule; BitGo users still awaiting credits due to website issues.
- Around $1.2 billion is eligible for distribution, but only those who completed KYC can access it.
- An estimated $400 million of claims have been resold and likely won't return to the market.
- Market sentiment suggests many creditors may not reinvest fully in crypto.
Mena Theodorou from Coinstash indicates Solana (SOL) might benefit from these distributions due to FTX's past investments in the ecosystem. However, recent market movements raise concerns about SOL's performance potential.
Most claims over $50,000 total approximately $17 billion, implying further waiting is required before significant liquidity re-enters the crypto market.