Nikolas Sargeant
FTX, the bankrupt cryptocurrency exchange, revealed plans on Thursday to commence its $16.5 billion customer repayment program by March 2025.
"We anticipate beginning distributions in early 2025," confirmed John J. Ray III, FTX Group CEO, as the company detailed its comprehensive repayment strategy.
Distribution Framework to Be Finalized in December
FTX will secure agreements with distribution agents for supported jurisdictions in early December. Following this, customers will receive guidance on establishing accounts through the dedicated customer portal.
The exchange will announce the plan's effective date by late December, contingent upon court approval for disputed claims reserves.
Implementation is targeted for early January 2025, with verified Convenience Class claims receiving payments within 60 days thereafter.
To receive initial distributions, customers must complete several requirements, including opening accounts with designated distribution partners, completing identity verification, and submitting required tax documentation before the specified deadline.
Legal Recovery Efforts Continue
The exchange's November 2022 collapse revealed one of the largest financial scandals in recent history. Previously valued at $32 billion, FTX crumbled after discoveries that customer funds were improperly used to cover Alameda Research losses and other expenses.
The Delaware bankruptcy court has approved a recovery plan offering creditors 119% of their allowed claims, based on 2022 bankruptcy asset valuations.
FTX continues its asset recovery efforts, recently filing over 20 lawsuits in Delaware, including a $1.8 billion claim against Binance for allegedly fraudulent transfers by Sam Bankman-Fried.
