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FTX Settles Lawsuit, Starts $16B Payouts October 1; Crypto Investors to Receive Up to 25% Back

Sep 28, 2024, 08:17 AM

FTX, the collapsed cryptocurrency exchange, has reached a settlement with plaintiffs suing over its collapse. This agreement resolves disputes between plaintiffs' lawyers and company lawyers over who has the right to sue on behalf of FTX customers, as detailed in a plan supplement. The settlement is expected to benefit creditors and allow FTX to focus on its bankruptcy proceedings. Distributions to creditors in cash are set to start on Monday, the first day of October. Crypto holders are expected to receive between 10% to 25% of their crypto holdings back, and equity holders will receive up to $230 million, representing 18% of Department of Justice forfeiture funds. Overall, up to $16 billion is likely to be returned to investors, potentially flowing back into the cryptocurrency market. This redistribution marks just the beginning of the process.