$1.9B FTX Payout Incoming — Here’s When It Could Boost the Crypto Market
A $1.9 billion payout from the FTX bankruptcy estate could soon flow into the crypto market, potentially driving a surge in prices. The estate announced the resolution of previously disputed claims, paving the way for upcoming distributions to creditors.
$1.9 Billion in Payouts on the Horizon
According to a recent FTX press release, the Bankruptcy Court has approved a $1.9 billion reduction in the reserve for contested claims. This move frees up funds for future payments to eligible claim holders—many of whom may reinvest their money into crypto assets, potentially fueling market momentum.
The next distribution is scheduled for on or around September 30, with August 15 set as the dividend record date for approved claims.
So far, the estate has already disbursed significant sums: $1.2 billion in February and another $5 billion in May. BitGo, Kraken, and Payoneer will manage the upcoming round of repayments. Prominent FTX creditor Sunil Kavuri confirmed on X that the distribution would apply to claims exceeding $50,000, while approved smaller claims will also be paid out as of the record date. The $1.9 billion will partially go to Class 6 General Unsecured Claims.
Timing Could Fuel a Crypto Rally
Notably, the May FTX distribution coincided with a major crypto rally, during which Bitcoin reached a new all-time high and altcoins surged. The September payout could align with the Federal Reserve’s expected first interest rate cut of the year, another potentially bullish catalyst for crypto.
If these factors converge, the crypto market could experience a sharp upward move. Analysts at Standard Chartered and Bitwise continue to forecast Bitcoin reaching $200,000 by year’s end.
