Collapsed cryptocurrency exchange FTX expects to begin repaying creditors and customers in early 2025, announcing its latest timeline of repayments on Monday as the firm nears the conclusion of its Chapter 11 bankruptcy process.
FTX's court-approved reorganization plan will become effective 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 repayments within 60 days of that date.
The crypto exchanges Kraken and BitGo will facilitate recoveries to eligible creditors, FTX announced Monday, with FTX customers required to complete know-your-customer or KYC verification, fill out tax forms, and onboard to Kraken or BitGo by the effective date.
The FTX Debtors today announced that the effective date for its Plan of Reorganization has been set for January 3, 2025, which is also the initial distribution record date for holders of allowed claims in the Plan’s Convenience Classes. Read more here: https://t.co/7Hggm5cTlS
Initial distributions will go to creditors with claims worth $50,000 or less. Those investors make up 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 FTX's statement. Distribution for all other creditors will be announced at a later date.
Creditors will receive the U.S. dollar value of their crypto 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 remunerate creditors, as per its bankruptcy plan. The plan, finalized in October, applies to 98% of creditors, who are expected to get 118% of their claim values back in U.S. dollars.
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Editor's note: This story was updated after publication with additional details.
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