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FTX creditors closer to repayment, voting on payback plan begins on October 7

  • FTX’s creditors are set to vote on a reorganization plan, this could open doors to repayment soon. 
  • The Official Committee of unsecured creditors put forward a plan post negotiations with debtors and believe that it offers the best case scenario, and call those affected to vote. 
  • The FTX repayment plan’s last minute changes have garnered criticism from traders and creditors on X. 

FTX creditors could soon receive payback of lost funds according to court documents and a call to vote that surfaced online. The official committee of unsecured creditors of FTX called upon investors who lost their funds to the FTX collapse to vote on a proposed repayment plan on October 7. 

The outcome of the vote could accelerate payback for creditors. 

FTX creditors to vote on plan for funds recovery

The official committee of unsecured creditors of FTX negotiated a plan with debtors and called creditors to vote on the same on October 7. According to a document, debtors and the official committee negotiated the payment plan, date value of creditor claims and distributions, finally calling for a vote. 

The October 7 vote could determine the next step in the recovery of user funds in the FTX collapse and bankruptcy. It was previously noted during the bankruptcy process that the crypto assets have noted an enhancement in their value and creditors can be paid back on a dollarized basis. 

Crypto traders expressed their dissent on the last minute changes to the payback plan per their responses on X. 

October 7 is therefore a key date to determine whether the reorganization plan will be put into effect and whether payments to unsecured creditors, exchange users who lost their crypto assets to the collapse will receive their funds. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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