- FTX is set to pay a massive $16.5 billion to its creditors.
- Bankruptcy judge John Dorsey approved FTX’s bankruptcy plan on Monday.
- With US elections approaching, the FTX repayments might affect crypto.
The upcoming U.S. elections in November are not the only event grabbing headlines; FTX’s bankruptcy repayment plan has added a significant twist to the final quarter of 2024 for the digital asset space.
A U.S. court has approved the bankrupt exchange’s plan, which allows FTX to start repaying its creditors. The exchange has recovered $16.5 billion by liquidating its assets and stakes in other companies.
Read also: FTX Payments to Begin: Bullish Signal for the Market?
According to Reuters, U.S. Bankruptcy Judge John Dorsey approved the plan during a hearing in Wilmington, Delaware, referring to FTX’s case as “a model for handling complex Chapter 11 bankruptcy proceedings.” FTX, which once led the market, collapsed in 2022 alongside other crypto companies like Alameda Research, leading to a loss of $40 billion in the digital asset market. This remains one of the most significant bankruptcies in crypto history.
Sam Bankman-Fried (SBF), FTX’s former CEO, is currently serving a 25-year sentence. He has indicated his plans to appeal the ruling but has yet to file an official case. SBF, once a prominent figure in the crypto world, was initially detained in a Brooklyn facility before being moved in May.
US Elections 2024 and Its Impact on the Crypto Market
As the U.S. Election Day draws nearer, Bitcoin is battling to hold its price above $60,000, turning the fourth quarter of 2024 into a critical time for the sector.
Read also: FTX Fraud: Caroline Ellison Sentenced to 2 Years in Prison
Republican frontrunner Donald Trump has maintained a pro-crypto stance, while Kamala Harris, the Democratic nominee, has yet to declare a definitive position. Although the Biden administration has been accused of attempting to “debank” crypto, Harris has suggested that her administration would create a more defined regulatory framework for cryptocurrencies.
According to Polymarket, a decentralized prediction market, Trump’s odds of becoming the next president stand at 52.4%, while Harris’ chances have dropped to 47%. As the crypto community watches the election closely, the direction of U.S. crypto policy in 2025 remains uncertain.
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