In a ruling on Monday, Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware formally approved FTX’s reorganization proposal.
This plan aims to ensure that 98% of FTX creditors receive at least 118% of their claims in cash.
If FTX creditors can reinvest their proceeds into the market in a timely manner, the cryptocurrency market is expected to usher in a new influx of funds.
The Crypto Rover team conducted an in-depth analysis of the $18.3 billion net inflows into Bitcoin ETFs since 2024 and conducted a comprehensive study based on new developments in FTX’s debt distribution.
In another prediction, Crypto Rover suggested that Bitcoin may start a new bull run after completing the current consolidation phase.
A new chapter after the FTX legend ends
Since the collapse of FTX in November 2022, after two years of asset recovery and reconciliation efforts, its bankruptcy reorganization plan has finally been legally recognized.
The scam, masterminded by former chief executive Sam Bankman-Fried, led to Bankman-Fried being jailed for 25 years for multiple offences including fraud.
FTX grossly defrauded a broad range of investors by commingling its funds with those of Bankman-Fried’s cryptocurrency hedge firm, Alameda Research.
Although the majority of creditors (94%) voted in favor of the restructuring plan, not everyone is satisfied with it. Among them, the largest creditor group represented by Sunil Kavuri explicitly opposed the plan, insisting that compensation should be made in the form of cryptocurrency rather than cash to reflect the original claim value in FTX's bankruptcy application.
In addition, lawyers for some creditors also pointed out that if compensation is made in cash rather than Bitcoin, they will face heavy tax burdens.
The fate of FTT tokens is uncertain
Despite Judge Dorsey’s ruling on Monday that FTT tokens are worth zero, the market price of FTT has continued to rise.
As the former utility token of the FTX exchange, FTT has risen 20% to $3.0 on TradingView, doubling in just 8 days.
After FTX's bankruptcy reorganization plan was approved, the price of FTT tokens rose accordingly.
However, if Judge Dorsey is correct, then investing in FTT may not be a wise move.
He admitted: “I currently have no evidence that the value of FTT tokens will exceed zero.”
Although FTT's market valuation is still as high as US$1 billion, its future trend is still full of uncertainty.
However, there is also a view that FTT may have become a "meme coin", which may provide some support for maintaining its long-term value like Terra's LUNC token.
