A significant portion of FTX repayments will likely be reinvested into cryptocurrencies, thanks to the promising growth prospect of the crypto market for 2025, industry insiders told Cointelegraph.
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The regulator said that while stablecoin-denominated creditor repayments may not be illegal, it “reserves its rights” to challenge transactions involving crypto assets.
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The objections raised by the US Trustee and the creditor group are likely to play a significant role in the court’s deliberations.
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United States District Judge Peter Castel has officially signed off on a settlement between FTX and the commodities regulator, meaning $12.7 billion will be paid back to FTX creditors.
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FTX lawyers stressed that in-kind crypto payouts would clash with bankruptcy laws but several creditors feel shortchanged by the proposed cash repayments plan.
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“Not all creditor repayments are bearish,” said K33’s analysts, noting FTX’s cash payouts versus the crypto repayments from Gemini and Mt. Gox.
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Under the plan, 98% of FTX creditors will get at least 118% of their claims back — the remainder will receive all of their claims “plus billions in compensation,” says FTX.
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Nearly $700 million of the $873 million trust assets allowed to be sold by FTX comes from Grayscale’s flagship product, the Grayscale Bitcoin Trust, or GBTC.
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Google has already invested $500 million as part of the deal, while the outstanding $1.5 billion will be paid over time, according to the Wall Street Journal.
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A proposed settlement could see creditors receive a shortfall claim of $8.9 billion for FTX.com and $166 million for FTX US.
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