According to the source, $16.5B remains earmarked for FTX creditors, indicating substantial distributions pending in the bankruptcy process that traders should track closely for liquidity impacts. Under the FTX Debtors’ Chapter 11 plan, creditor recoveries are intended to be paid in cash rather than in-kind crypto, which reduces direct sell pressure on BTC and ETH from the estate itself. Source: U.S. Bankruptcy Court for the District of Delaware, Case No. 22-11068 (FTX Trading Ltd.), Disclosure Statement for the Amended Joint Chapter 11 Plan, filed May 7, 2024. The court previously authorized Galaxy Digital as investment advisor to execute orderly liquidations and hedging of digital assets, a structure designed to minimize market impact during asset monetization. Source: U.S. Bankruptcy Court for the District of Delaware, Case No. 22-11068, Order Authorizing the Retention and Employment of Galaxy Digital Capital Management LP, entered Sept 13, 2023. Traders should monitor the Delaware Bankruptcy Court docket for plan effectiveness and distribution timeline notices, as these are the definitive triggers for cash outflows to creditors and potential secondary market flows. Source: U.S. Bankruptcy Court for the District of Delaware public docket, Case No. 22-11068 (FTX Trading Ltd.).

According to FoxNews, NBA legend Shaquille O’Neal has agreed to a $1.8 million settlement in a class-action lawsuit for promoting the collapsed crypto exchange FTX, a figure substantially higher than the $750,000 he was reportedly paid for the endorsement. In a separate development crucial for FTX creditors, the bankrupt exchange's estate is formally challenging a $1.53 billion claim from the liquidators of crypto hedge fund Three Arrows Capital (3AC). FTX's lawyers argue in a court filing that 3AC is owed nothing, attributing the hedge fund's collapse to its own risky trading strategies and market declines, not any malfeasance by FTX. The filing states the actual value of 3AC's assets on the exchange was only $284 million in June 2022, disputing 3AC's claim that FTX improperly liquidated $1.53 billion of its assets.