FTX creditors may only receive 10-25% of their funds back as legal issues complicate the restructuring process. Activist Sunil Kavuri expressed concerns about whether the payouts will be in cryptocurrency or cash, adding that there’s uncertainty around the final amount.
FTX has already transferred $230 million to equity holders, worrying many creditors. While there are rumors that payouts could begin in October, nothing is officially confirmed.
Key issues include potential tax burdens if payouts are made in cash and dissatisfaction with the current plan, which some claim prioritizes equity holders over creditors. The SEC has also raised objections to the proposed restructuring plan.