According to the latest repayment schedule announced on Monday by the collapsed cryptocurrency firm FTX, it expects customers and creditors to be repaid in the first quarter of 2025. This is as the company nears its Chapter 11 bankruptcy.
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.
FTX has announced that Kraken, BitGo and other crypto-exchanges will assist in recovering debts for eligible creditors. FTX clients are required to fill out KYC forms and to join Kraken, BitGo or both by the date of implementation.
Creditors with claims under $50,000 will receive the first distributions. They represent over 90% of the total creditors in FTX’s bankruptcy.
The first batch of payments should go out within 60 days of January 3, according to FTX's statement. The distribution for the other creditors will take place at a subsequent date.
The value in U.S. dollars of the crypto assets that creditors held on FTX will be determined by the price of these assets when the exchange declared bankruptcy, which was November 20, 2022.
According to its bankruptcy plan, FTX may allocate as much as $16.5 billion in compensation to creditors. Finalized in October, the plan applies to 98% creditor, and they are expecting to receive 118% back of their claims values in U.S. dollar.
Editor's note: This story was updated after publication with additional details.
