The post No, FTX creditors will not receive $16 billion today appeared on BitcoinEthereumNews.com.

One of yesterday’s trending news stories on X was a supposed reminder that today, September 30, would be the day that FTX bankruptcy creditors would receive approximately $16 billion. Like many breaking headlines on X, however, that is entirely untrue. Posts about the supposed payouts and the ostensible distribution of FTT liquidity earned hundreds of thousands of impressions and thousands of likes. Undeterred by fact checks, traders bid up the price of FTX’s proprietary token, FTT, from less than $1.40 on Saturday to a high of $2.71 on Sunday. Although FTX’s bankruptcy estate has announced plans to make distributions during the fourth quarter, there are no distributions happening this week. The next earliest date that distributions could occur would be after the bankruptcy plan confirmation hearing on October 7 in the US Bankruptcy Court for the District of Delaware. $FTT pumped 115% in the last 24 hours 🚀 The reason behind this pump is that a news started to come that #FTX distribution will start tomorrow. But there is no valid source for this news. pic.twitter.com/ihbwtq0iQr — Wise Advice (@wiseadvicesumit) September 29, 2024 Read more: CHART: Everyone sentenced from FTX and Alameda FTX to repay ‘in full with interest’… with a catch As Protos noted in a previous fact check, if that court confirms FTX’s Chapter 11 bankruptcy plan next week, that confirmation might allow FTX to repay approximately 98% of customers and unsecured creditors “in full with interest” using a USD calculation for all crypto asset prices as of November 11, 2022.  That means, sadly, a price of just $16,871 per bitcoin and similarly dismal rates for altcoins. Although creditors have blamed the estate for “breathlessly touting what they claim to be a full recovery with interest” that is “nothing of the sort,” calculations based on November 11, 2022 prices…

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Filed under: News - @ September 30, 2024 9:24 am