In summary
- FTX plans to initiate repayments to creditors in the first 60 days of 2025.
- Creditors with claims of $50,000 or less will receive priority initial payments.
- Refunds will be based on Cryptocurrency values in November 2022.
Collapsed cryptocurrency exchange FTX expects to begin repaying creditors and customers in early 2025, announcing its latest payment schedule on Monday as the firm nears the conclusion of its Chapter 11 bankruptcy process.
FTX’s court-approved reorganization plan will take effect on January 3, 2025, and the firm’s bankruptcy team — led by FTX Debtors CEO John J. Ray III — expects to make an initial distribution of refunds within 60 days after that date.
Cryptocurrency exchanges Kraken and BitGo will facilitate recoveries for eligible creditors, according to FTX, with exchange customers required to complete know-your-customer or KYC verification, fill out tax forms and register on Kraken or BitGo before the effective date.
Initial distributions will go to creditors with claims worth $50,000 or less. These investors represent more than 90% of all creditors in the FTX bankruptcy.
The first batch of payments should go out within 60 days of January 3, according to the FTX statement. Distribution to all other creditors will be announced at a later date.
Creditors will receive the US dollar value of their cryptocurrency holdings on FTX, based on the prices of those assets at the time the exchange filed for bankruptcy in November 2022.
FTX could allocate up to $16.5 billion to compensate creditors, under its bankruptcy plan. The plan, finalized in October, applies to 98% of creditors, who are expected to recover 118% of the value of their claims in US dollars.
Editor’s note: This story was updated after publication with additional details.
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