The FTX token (FTT) rose 15% after news that FTX will begin paying creditors and customers as part of its bankruptcy proceedings in early 2025. This is a significant step in the company’s Chapter 11 reorganization process.
The bankruptcy plan approved by the court and confirmed in October 2024 will come into force on January 3, 2025. This date will also be the “cut-off date” for the first tranche of payments to some creditors.
According to a statement, FTX said it will begin paying out 60 days after the plan goes into effect, starting with “Convenience Classes” claims.
The announcement led to a sharp increase in the price of the FTX token to $3.28 while increasing its market cap to $1.08 billion. Trading volume increased by 170%, suggesting that investors are hoping for a positive outcome for those affected by the stock market collapse in 2022.
Even if these payments represent a good step…
