Bitcoin News Today: FTX's $1.6B Payout Sparks Pricing Dispute as Bitcoin Surpasses $120K

FTX's $1.6 billion creditor payout, scheduled for September 30, 2025, marks a pivotal moment in the cryptocurrency market's post-bankruptcy recovery. The distribution, part of the exchange's Chapter 11 reorganization plan, will allocate funds to 98% of affected customers and creditors through partners BitGo and Kraken. Eligible claimants will receive up to 118% of their original deposits (100% principal plus 18% interest), calculated using November 2022 crypto prices, despite significant market appreciation since then. The payout, totaling $1.6 billion, follows earlier distributions of over $6 billion since FTX's collapse in late 2022, with the first phase alone disbursing $1.2 billion to small creditors in February 2025 Everything You Need to Know About FTX's $16B Claims Payout in …^[1].

The valuation methodology has sparked controversy among creditors. Critics argue that using 2022 prices, when Bitcoin traded between $16,000 and $20,000, undercompensates claimants, as the asset now exceeds $120,000. While the court upheld this model for consistency, legal experts suggest it may favor the estate's administrators over creditors. Additionally, a 2024 filing sought to freeze 5% of claims in 49 jurisdictions, including China, due to regulatory uncertainties, highlighting ongoing legal hurdles FTX Repayment 2025: Key Dates & Payouts^[2].

Market reactions to the payout have been mixed. Despite the influx of liquidity, Bitcoin and other cryptocurrencies have remained range-bound, with BTC trading between $115,000 and $117,000. The initial $1.2 billion disbursement in February even triggered a 1.1% drop in Bitcoin's price, as recipients liquidated assets, increasing selling pressure. Analysts remain divided: some argue the $1.6 billion could spark an altcoin rally if funds are reinvested, while others note that broader market conditions and investor sentiment will ultimately dictate outcomes FTX Set to Repay $1.6B to Creditors, Hopes for Crypto Upside^[3].

Legal and regulatory implications persist. FTX's lawsuits, including a $1.8 billion claim against Binance, underscore the complexity of asset recovery. Meanwhile, the case against Sam Bankman-Fried, who is appealing his 25-year prison sentence, adds uncertainty. His defense contends that FTX was never insolvent, a claim that could influence public perception and regulatory scrutiny of crypto exchanges Everything You Need to Know About FTX's $16B Claims Payout in …^[1].

The potential for a market revival hinges on how recipients deploy the funds. Traders and analysts suggest a bifurcated response: some creditors may cash out immediately, while others could reinvest in Bitcoin, Ethereum, or altcoins. This dynamic creates both opportunities and risks, with short-term volatility likely as liquidity flows are tested. For long-term gains, experts recommend diversifying into established projects with real-world utility, such as layer-1 blockchains or DeFi protocols, rather than speculative assets FTX Repayment 2025: Key Dates & Payouts^[2].

While the FTX payout represents a step toward resolving the crypto industry's largest financial collapse, its long-term impact remains uncertain. Success in restoring investor confidence could stabilize markets, but prolonged outflows of refunded capital might exacerbate bearish trends. The coming months will test whether this liquidity injection can catalyze a broader market rebound or merely serve as a temporary reprieve.