Summary: A tariff truce agreement has been reached between China and the U.S., yet Bitcoin faces resistance at $104,000. The bankrupt crypto exchange FTX announced plans to begin a new round of distributions to creditors on May 30, creating strong selling pressure.
Bitcoin has rebounded from an overnight slump, returning to around $104,000, but cautious sentiment remains strong. Despite the U.S. government's tariff 'truce' agreement with China, Bitcoin still faces resistance. The bankrupt crypto exchange FTX announced plans to begin a new round of distributions to creditors on May 30, creating strong selling pressure.
After FTX's collapse at the end of 2022, it started distributing refunds to creditors in February. The initial refund recipients were convenience claim holders with claims of $50,000 or less.
In the latest update of FTX's Chapter 11 bankruptcy proceedings, FTX Trading Ltd. and FTX Recovery Trust will begin a second distribution of over $5 billion to creditors on May 30.
(Source: The Crypto Times)
This announcement marks a critical step in returning funds to users affected by the 2022 FTX financial crisis, during which FTX exposed an $8 billion deficit due to a surge in customer withdrawals.
According to official information released, FTX's Chapter 11 plan shows that holders of convenience and non-convenience claims who have met the pre-allocation requirements will receive funds. It is noteworthy that approved Class 7 convenience claims will receive a 120% distribution, while approved Class 5A internet customer equity claims will receive a 72% distribution.
The announcement shows that all eligible creditors can receive payments through the distribution service providers Bitgo or Kraken within 1 to 3 business days.
FTX's collapse stemmed from the risky financial relationship it had with its sister company, Alameda Research, as well as a liquidity crisis, which had a profound impact on the cryptocurrency market, comparable to a major financial scandal. The upcoming distribution is expected to inject significant liquidity into the market, with some speculating it will have a positive effect on Bitcoin and other altcoins. Creditors must complete 'Know Your Customer' (KYC) verification and work with the distribution service provider to participate in this or future distributions.
Previously, the court approved FTX's bankruptcy plan in October 2024, which will use up to $16.5 billion of recovered assets to prioritize the repayment to customers, setting a precedent for complex bankruptcy cases in the crypto industry.
Since the announcement, the cryptocurrency market has slightly declined but has regained upward momentum during the Asian session on Friday.
Not only are Bitcoin investors facing selling pressure, but there are also concerns surrounding the U.S. blue-chip public blockchain Solana (SOL) token.
Looking back, FTX unlocked 11.2 million SOL tokens on March 1, beginning the first distribution to creditors, which led to a sharp drop in SOL prices at that time.
FXStreet believes that the recent price drop may stem from investors' concerns about the potential impact of the distribution on the cryptocurrency market.
