Bankrupt crypto exchange FTX has announced plans to repay $16 billion to its customers in stablecoins by March 2025. This move comes as part of FTX’s Chapter 11 reorganization plan, which aims to address the financial fallout from its collapse in late 2022.
Effective Date for Repayments
FTX has set January 3, 2025, as the effective date for its reorganization plan. According to FTX CEO John J. Ray III, “We are well positioned to begin executing the distribution of recoveries back to all customers and creditors.” The first batch of repayments is expected to occur within 60 days of this date. Visit official website for more details.
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
— FTX (@FTX_Official) December 16, 2024
Distribution Partners
To facilitate the repayment process, FTX has enlisted the help of crypto custodian BitGo and crypto exchange Kraken.
BitGo CEO Mike Belshe stated, “With our long-standing reputation as the most secure choice in the industry, we work hard to bring institutional-grade service to both retail and institutional clients.” Kraken has also confirmed its role in assisting with the distribution of recoveries.
Repayment Process
Customers with claims of $50,000 or less will be prioritized in the initial repayment phase. These customers, referred to as the “convenience classes,” are expected to receive 119% of their claimed account value based on the U.S. dollar value of their deposits as of November 2022. Subsequent repayment groups, including larger debtors, will be announced as the process unfolds.
Legal Actions and Asset Recovery
FTX has been actively involved in legal actions to recover assets. The company has filed lawsuits against several exchanges and platforms, including Binance, to reclaim misappropriated funds. These efforts have contributed to the accumulation of the $16 billion earmarked for repayments.
Customer Portal and Requirements
FTX has set up a customer portal where creditors can complete the necessary steps to receive their repayments. This includes Know Your Customer (KYC) verification and submitting required tax forms. Customers can choose to receive their repayments through USD wire transfer or stablecoins
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