Starting January 3, 2025, the distribution of funds to creditors of the exchange that collapsed in 2022 will begin.
On December 16, FTX, the exchange that failed in 2022, announced that its fund distribution plan for creditors will take effect on January 3, 2025, with the first repayments expected within the following 60 days. The company plans to distribute approximately $16 billion to creditors.
The initial distribution will involve users with claims of $50,000 or less, representing about 90% of all creditors. To receive any payment, customers must register through the FTX Customer Portal.
To manage the distribution, FTX will rely on two partners: Kraken and BitGo. Kraken already has experience in a similar role, having managed repayments for Mt. Gox creditors.
John J. Ray III, CEO of FTX Debtors, stated:
“For the past two years, our team of professionals have meticulously and efficiently worked to recover billions of dollars to reach this point.”
The plan, approved by Judge John Dorsey of the Delaware Bankruptcy Court last October, provides that 98% of creditors will receive at least 118% of the value of their claims in stablecoins. This solution received the approval of 94% of creditors.
However, criticism has not been absent, particularly from Sunil Kavuri, representative of the largest group of creditors, who argued for repayments to be made in cryptocurrencies rather than in dollars at their 2022 value.
