TechFlow News, according to Cointelegraph, rumors recently circulated on social media claiming that FTX would begin distributing compensation funds to creditors and customers starting September 30, 2024. However, this claim has been confirmed as false. According to the latest bankruptcy filings, the next court hearing to confirm the reorganization plan is scheduled for October 7, 2024, presided over by Delaware Bankruptcy Court Judge John T. Dorsey.
FTX's distribution plan is currently facing opposition from creditors. Creditors are demanding repayment in tangible assets such as cryptocurrency rather than cash. However, FTX’s legal team insists that payments must be made in cash to avoid conflicts with existing bankruptcy laws and prevent procedural delays.
If the plan is approved, small creditors with claims under $50,000 may begin receiving compensation by the end of 2024. Larger claimants might not receive payouts until the first or second quarter of 2025.
