FTX Don Start Pay Creditors $5B Amidst Ongoing Bankruptcy and Market Wahala Concerns
FTX, di crypto exchange wey get wahala, don start im second and biggest round of pay back to pipo wey dem owe, wey dem don share over $5 billion through FTX Recovery Trust. Dis money sharing, wey start for May 28, go reach pipo wey get small claims (under $1 million) and pipo wey get big claims (over $1 million) wey don meet all di conditions before dem pay. Payments start for May 30 through Kraken and BitGo. Dotcom customers go collect 72%, US customers 54%, and small claims go get 120%, while general unsecured and digital asset loan claims go get 61%. Di first $1.2 billion round for claims wey no reach $50,000 don finish for February. But gbas-gbos still dey: all di money dem give based on how crypto worth for November 2022 (wen BTC bin dey around $16,000), wey far below wetin e worth today, and dis one don make dem lose plenty value. Over 160 countries, including Russia and Iran, get pipo wey dem no go pay. FTX still dey warn users make dem shine their eye for phishing scams for dis time. Traders suppose know say di plenty money wey dem dey pay go fit affect crypto markets if di pipo wey collect am carry am go spend or invest am again, and dis one go make di market shake well-well. Many pipo wey dem owe no happy with di way dem dey pay and dem don ask question about if FTX do am fair. Di matter still dey unfold, with more money sharing expected as dem dey recover assets and check claims.
Bearish
Wen FTX pay back plenty money, na im make plenty cash dey available for di creditors. But because dem calculate di money wey dem go pay for di 2022 crypto bear market price, many wey collect money lose plenty compared to di current price. Dis fit make some creditors sell dia assets wey dem collect back immediately, and dis go put pressure for di market and fit even make prices drop for short time. Di way people feel say di payment no fair and say dem leave out some international creditors fit make market confidence spoil pass. Before before, wen dem pay out plenty money like dis, e dey make market unstable and prices dey fall as people dey rush to sell. For now, all dis things make di news bearish for crypto prices, especially for di assets wey directly involved. But for long run, once di bankruptcy finish and dem recover di assets, market go fit stable, but for now, di effect go likely be negative because dem expect say people go sell plenty.