Rumors of the $16 billion FTX distribution have spread across the crypto community, leaving many investors blindsided with expectations of a September 30 payout. However, with no confirmation from FTX, and the distribution plans still pending Court approval, the actual timeline for the payments remains uncertain.
Fake Payment Rumors Mislead Crypto Community
The crypto community has been flooded with speculations about an impending $16 billion FTX distribution, with many believing that the payments would be made by September 30. Prominent crypto analysts like ‘EllioTrades’ and ‘CryptoRover,’ are among the few spreading this rumor across social media platforms like X (formerly Twitter).
EllioTrades stirred excitement among his 761,300 followers on X by claiming that the rumored $16 billion FTX payout would occur on the first day of “Uptober,” hinting that a possible bullish rally could follow the distribution.
Additionally, CryptoRover, with his 841,500 followers also spread the fake news, causing many to believe the rumor and anticipate a potential bullish surge after the payouts.
The spread of these rumors amongst top crypto analysts highlights the powerful influence of speculation in the crypto community. One crypto community member recently called out ‘CryptoRover’ for misleading posts, criticizing large creators like him for failing to conduct proper research before spreading misinformation.
The effects of the rumors have also spread its influence to FTT, the native token of the collapsed FTX crypto exchange. Earlier this week, FTT jumped 35.99% as rumors of the distribution plans circulated in the crypto community. As the rumors have begun to clear up, the coin is down by 13.45%.
Timeline For FTX Distribution
Amidst the disarray caused by the rumors, many crypto community members have come forth to clarify the timeline for the $16 billion FTX payout. Ariel Givner, an IP and corporate attorney in Fintech took to X on the day of the rumored FTX distribution to clarify the misinformation. Givner revealed that the speculation of FTX distributing its $16 billion to creditors was “incorrect,” as the Court has yet to confirm the restructuring of the distribution plans.
According to the updated Chapter 11 filing, the next Court hearing to approve or disapprove FTX distribution plans to creditors will be held on October 7. Until then, the timeline for FTX’s distribution plans remains uncertain and will not be finalized. If the Court confirms the restructuring plans, claimants with less than $50,000 may begin receiving the promised payout by late 2024. Larger claimants on the other hand may not see distributions until the first or second quarter of 2025.
FTX has also disclosed via its official X account that full control of the impending distribution has been forfeited to the Department of Justice (DOJ) and the fraudulent crypto exchange intends to return 100% of the assets under FTX’s control to creditors.
