FTX Will Pay Debt Worth IDR 232 Trillion, Positive Impact On Crypto Market

FTX crypto exchange plans to pay debts to creditors. (Photo; Doc. Petabook)

JAKARTA The bankrupt crypto exchange, FTX, is rumored to be paying its debt worth US$14.5 billion (around Rp232 trillion) to creditors. This plan is expected to have a positive impact on the crypto market. The refund to creditors is considered positive for the crypto market.

According to an analysis from K33 Research, refunds to FTX creditors could trigger a spike in buying activity in the crypto market. The USD 14.5 billion payout is expected to offset the negative impact of other refund efforts, such as the Mt case. Gox and Gemini are also returning nearly USD 11 billion (IDR 176 trillion) to their creditors.

However, the time for implementing this payment is still unclear. The refund of these funds is expected to begin at the end of this year, with an explosive market performance potential at the end of the year.

On the other hand, Ryan Salame, former Co-CEO of FTX Digital Markets, is submitting an application to reduce his sentence to just 18 months. Salame once pleaded guilty to criminal charges related to the collapse of FTX, including a conspiracy to deceive the Federal Elections Committee. Now the FTX official is facing a maximum sentence of 10 years in prison.

As reported by CCN, Salame agreed to cooperate with US authorities and pay a fine of USD 6 million (IDR 96 billion) to the US government and USD 5 million (IDR 80 billion) to FTX debtors, in addition to handing over two houses and a luxury car.

Salame's lawyers argued that Salame was not aware of the conspiracies that had taken place in FTX and Alameda. They stressed that Salame was the first to tell the authorities in the Bahamas about the fraud that occurred, just two days before Sam Bankman-Fried (SBF) resigned and FTX filed for bankruptcy.

Caroline Ellison's testimony in the SBF trial stated that SBF deliberately hid fraud from Salame, just like they deceived other worlds. Salame's lawyers stressed that their clients did not steal or deceive anyone and were simply victims of a bigger scam.

The impact of the collapse of FTX is still felt in the crypto market which has just recovered from its lowest point in 2022/2023. However, the optimistic views of K33 Research provide hope for market players who are concerned about their funds at FTX.

Sam Bankman-Fried, who faces up to 110 years in prison, was finally sentenced to 25 years in prison. Meanwhile, Ryan Salame, who will be sentenced to a maximum sentence of 10 years on May 28, 2024, faces a maximum sentence of 10 years.

With this large debt payment, the crypto market has the potential to experience significant changes. Revenue of funds in fiat may not be an ideal choice for all creditors, but this could be a first step towards restoring the trust of crypto investors.