FTT Token (FTT) jumped 15% after it emerged that FTX will begin paying creditors and customers in early 2025

This is a significant step in the company's Chapter 11 reorganization process. The court-approved bankruptcy plan, confirmed on October 2024, will take effect on January 3, 2025.

FTX Token (FTT) price experienced a surge of 15% after it was revealed that FTX will commence paying creditors and customers in early 2025 as part of its bankruptcy proceedings. This marks a significant development in the company’s Chapter 11 reorganization process.

The court-approved bankruptcy plan, which was confirmed on October 2024, will become effective on January 3, 2025. This date will also serve as the “record date” for the first installment of payments to certain creditors.

In a statement, FTX announced that it will begin making payouts 60 days after the plan takes effect, commencing with the “Convenience Classes” claims.

This announcement led to a surge in FTX Token’s price, driving it up to $3.28 while simultaneously pushing the market capitalization to $1.08 billion. Trading volume also experienced a surge of 170%, indicating optimism among investors regarding a positive outcome for those impacted by the exchange’s collapse in 2022.

Despite these payments marking a positive step forward, it is important to note that the FTX Chapter 11 process has only just begun. The company still faces significant legal and financial challenges, and it remains to be seen when the process will ultimately conclude. The company’s recovery will likely span several years and hinge largely on the liquidation of assets and the resolution of pending legal matters.