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FTX Creditors Get Relief with $1.6B Payout, Altcoin Market Eyes Momentum
FTX is back in the spotlight as creditors prepare to receive a long-awaited payout of $1.6 billion on September 30, though the figure comes in slightly below the $1.9 billion initially promised. The move could inject fresh liquidity into the crypto market at a time when conditions appear ripe for an altcoin surge.
$1.6 Billion Payout on the Way
According to the FTX Recovery Trust, eligible claim holders who have completed requirements such as KYC, tax documentation, and onboarding with providers including BitGo, Kraken, or Payoneer can expect to see funds arrive within 1–3 business days. While the distribution is significant, it leaves some creditors short of expectations.
Even so, recovery rates have climbed as high as 95% for certain claim classes, offering meaningful relief to many victims of the exchange’s collapse. This marks the third distribution in FTX’s effort to reimburse its former users.
Sam Bankman-Fried Prepares Appeal
Adding further drama, former FTX CEO Sam Bankman-Fried (SBF)—who was sentenced to 25 years in prison earlier this year—plans to appeal his conviction in November, just after the payout. Convicted on seven counts including wire fraud and money laundering conspiracy, SBF maintains that FTX was never truly insolvent and argues that the court treated him unfairly.
Could Altcoins Rally?
The timing of the payout is drawing attention from traders as the Altcoin Season Index currently stands at 86, signaling conditions favorable for a potential breakout. Historically, creditor reimbursements have fueled bursts of retail optimism, sometimes sparking quick rallies across the market.
Still, whether this round of payouts leads to a full-blown altcoin run depends on how much of the $1.6 billion ultimately flows back into crypto markets.
