The FTX token (FTT) saw a dramatic surge of over 113% during intra-day trading, driven by false rumors of a $16 billion creditors repayment.

This rally was fueled by speculation on social media suggesting that FTX would begin distributing funds to creditors and customers on September 30.

However, no court-approved repayment plan exists as of now, and the rumors were dismissed by Sunil Kavuri, a representative of FTX creditors.

If the bankruptcy plan is approved in the upcoming court hearing on October 7, smaller claimants could receive payments by late 2024, while larger creditors may have to wait until mid-2025.

As of September 30, FTT's price adjusted to approximately $2.12, reflecting its volatility and a significant increase of 61% over the previous 24 hours.

FTT reached a peak price of $2.70, the highest since March 2024, before settling at $2.14.

The trading volume for FTT skyrocketed by over 1,600%, exceeding $360 million, with a notable portion of this activity occurring on Binance.

Despite the excitement, FTT's price corrected by the end of the day, leading to uncertainty among investors regarding future price movements.

In contrast to FTT's performance, the overall cryptocurrency market experienced a decline in market capitalization by 1.89% during the same period.

Many creditors are expressing frustration, believing they may only recover 10-25% of their assets based on the proposed payout structure.

The upcoming court hearing is crucial, as it will determine the fate of FTX's restructuring plan and the potential repayment to creditors.

FTT's significant price jump is unusual given that the token currently lacks utility and has lost over 90% of its value since the fraudulent activities of FTX were revealed.