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FTX $14.5 Billion Repayments May Affect Crypto Markets as Former Co-CEO Ryan Salame...

• https://www.ccn.com, BY EDDIE MITCHELL

The forthcoming repayments to FTX creditors could be a bullish signal for the overall crypto market. With $14.5 billion set to be repaid, the payouts may create a fresh wave of buying pressure.

As the FTX bankruptcy saga unfolds, the lawyers representing former co-CEO of FTX Digital Markets, Ryan Salame, have appealed to have his sentence capped at 18 months.

FTX Repayments Bullish for Crypto?

According to analysis  from K33 Research, the upcoming repayments to FTX creditors may fuel a "bullish overhang for the market.

As per the report, FTX's minimum repayments of $14.5 billion to creditors could trigger significant buying activity in the market. The surge could counteract negative effects resulting from other crypto-based reimbursement efforts with Mt. Gox and Gemini, who are repaying almost $11 billion to creditors.

According to K33, the timing of these reimbursements is a major factor that will determine how they affect the market, should they have any effect at all. Unfortunately, the timeline for repayments is unknown, though they are anticipated to begin rolling out later this year.

In the views of K33, a staggered release could result in an unremarkable summer, followed by a potentially explosive performance at the end of the year.

A Slimmer Sentence

As per a May 14, 2024, sentence memorandum filed with the U.S. District Court for the Southern District of New York, and reported by Inner City Press, Salame's legal team is seeking a lenient 18-month sentence for the former FTX exec.


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