• FTX to begin repayments on Jan 3, 2025, prioritizing claims under $50,000 within 60 days of the start date.
  • 98% of FTX creditors will recover at least 118% of their claims, despite valuation disputes over asset prices.
  • FTX estate pursues lawsuits to recover funds, including a $1.8B claim against Binance and Changpeng Zhao.

FTX’s bankruptcy estate has updated its repayment timeline. Initial distributions to creditors and customers are scheduled to begin on January 3, 2025. The plan focuses on reimbursing affected users after more than two years of court proceedings.

🚨🚨BREAKING NEWS 🚨 🚨

FTX to process bankruptcy payouts in stablecoins via BitGo and Kraken, making it easier for users to access their funds.

Big win for crypto! 💥 This move could pump more money into the market, with altcoins likely to see a surge in activity. 🚀… pic.twitter.com/xX7lbil6Wo

— Crypto Tamil (@CryptoTamil) December 16, 2024

The first group of claim holders will receive payouts within 60 days of the effective date. The distribution process will prioritize smaller claims of $50,000 or less. Kraken and BitGo , two prominent crypto firms, will oversee the recovery fund distributions. Larger customer groups and creditors awaiting repayment will receive updates in later phases.

98% of Creditors to Receive 118% of Claims  

Under the approved plan, 98% of creditors are set to recover at least 118% of their claim value in cash. A U.S. bankruptcy judge previously approved this reorganization in October 2024. 

Notably, 94% of creditors with “dotcom customer entitlement claims” voted in favor of the proposal. These claims amount to $6.83 billion.  

The plan has faced criticism over its valuation method. Repayments are calculated based on digital asset prices as of November 2022, when FTX filed for Chapter 11 bankruptcy. 

At that time, Bitcoin was valued at $16,000, compared to its current price of nearly $106,000. Some creditors argue that the valuation fails to reflect the recent crypto market rally.  

Lawsuits to Recover Additional Funds  

Several companies and individuals connected to the FTX collapse have been sued by the FTX estate. They are suing KuCoin for $50 million, Crypto.com for $11 million, and SkyBridge Capital for $100 million. 

It also filed a $1.8 billion lawsuit against Binance and its founder, Changpeng Zhao. The lawsuits allege that FTX filed fraudulent transfers prior to collapsing in 2022.

No Revival for FTX 2.0

Discussions on reviving the FTX platform under “FTX 2.0” have been abandoned. The estate cited a lack of investor interest to restart the platform.  

FTX collapsed in late 2022 after a liquidity crisis and misuse of customer funds. Last year, the exchange’s former CEO Sam Bankman-Fried was found guilty of fraud. He is serving 25 years in prison. The FTX estate is holding an estimated $14.7 billion to $16.5 billion to repay customers and creditors.

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