FTX is set to distribute $1.6 billion to creditors on September 30, slightly less than the promised $1.9 billion. This payout comes as creditors reclaim their funds, and it could potentially stimulate an Altcoin rally, as the Altcoin Season Index stands at 86, signaling favorable market conditions.
The distribution will benefit eligible claim holders who have completed necessary requirements through platforms like BITGO and Kraken. Despite the reduced payout, creditors may find relief as the cumulative recovery rate approaches 95% in certain classes.
Sam Bankman-Fried (SBF), sentenced to 25 years in prison for various crimes, will appeal his conviction in November. His appeal represents a pivotal moment for him to contest the ruling, claiming that FTX was never truly insolvent.
Overall, the anticipated FTX payout is expected to influence the market, but the extent of its impact on Altcoins will depend on how much of the distributed cash flows back into cryptocurrency.
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