tl;dr
Rumors on crypto social media claim FTX will distribute $11 billion to creditors on Oct. 1. However, official documents state that FTX's legal team will finalize the repayment plan in a court hearing on Oct. 7. Distributions won't begin this week, and smaller claims may start receiving distributions...
FTX exchange is rumored to distribute $11 billion to creditors on Oct. 1, but official documents reveal distributions not starting this week. FTX creditor activist dispels false information about distributions, court hearing on Oct. 7 to finalize repayment plan.
Despite FUD, crypto markets sell off as FTT token surges over 50% in 24 hours but remains down 97.5% from all-time high. Rumors claim FTX will distribute $11 billion to creditors on Oct. 1, but official documents state that FTX's legal team will finalize the repayment plan in a court hearing on Oct. 7. Distributions won't begin this week, and smaller claims may start receiving distributions by the end of 2024, while larger claimants may wait until 2025. FTX creditor activist refutes false information and estimates that half of the claims won't be reinvested in crypto. Despite FUD, FTX's native token, FTT, surges over 50% in 24 hours but remains down from its all-time high.
Rumors abound on crypto social media suggesting that the embattled exchange FTX will start distributing as much as $11 billion to creditors on Oct. 1. However, official documents reveal a different timeline. “MartyParty” told his 116,000 X followers to sell their ETH, ADA, and DOT before this week’s distributions while shilling SOL and SUI. Meanwhile, crypto advisor Dan Held told his 720,000 X followers, “$16B in distributions from FTX will start happening tomorrow,” but suggested that degens would buy back in. “Crypto Rover” added to the FUD misreporting that FTX distributions would begin this week to his 840,000 X followers.
However, the truth is a little different, so there is little need for panic selling or any of the FUD. According to official documents, FTX’s legal team will attend a court hearing on Oct. 7th to finalize the repayment plan, so there will be no distributions this week. Moreover, if the revised plan is approved, smaller claims under $50,000 may begin receiving distributions by the end of 2024. Larger claimants may not see any distributions until the first or second quarter of 2025. On Sept. 29, FTX creditor activist Sunil Kavuri estimated that half of the claims, around $5.5 billion worth, won’t be reinvested in crypto.
In June, creditors led by Kavuri objected to the repayments favoring reimbursement with in-kind assets rather than cash, which would be taxable. CNBC crypto trader Ran Neuner also dispelled the FUD stating that distributions would start within 60 days of the plan becoming effective.
Despite the unfounded FUD, crypto markets were selling off during Monday morning trading in Asia. Total capitalization had fallen by 2.7%, with Bitcoin dropping to the $64,500 level after topping $66,000 over the weekend. The native token for the embattled crypto exchange, FTT, has surged more than 50% over the past 24 hours, reaching a seven-month high of $2.70 on Sunday before retreating to $2.19. FTT has gained more than 70% over the past fortnight, largely driven by reimbursement rumors. However, the asset still remains down 97.5% from its all-time high of $84 in September 2021.
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More about United States Steel Corporation
Company: United States Steel Corporation
Business Focus: Manufacturing, Steel Works, Blast Furnaces & Rolling Mills (Coke Ovens)
Headquarters: Pittsburgh, Pennsylvania
Phone: 8013146000
Current Stock Price: $15.55
Price Change: $0.2
Percentage Change: 2.29%
52-Week Range: $7.31 - $0.034
Market Cap: $16,853,000,000
PE Ratio: 42.16
EPS: -$0.617
Dividend Yield: -0.178%