On Thursday, FTX announced that it plans to begin repaying $16.5 billion to affected customers by March.
“We are pleased to announce that we will begin distributing proceeds in early 2025,” – John J. Ray III, CEO of FTX Group, said. The exchange outlined the refund process in a statement.
In early December, FTX will finalize agreements with agents who will help distribute funds to customers in the areas served. Customers will then receive instructions on how to set up an account with these agents using the customer portal.
By the end of next month, FTX will make public the exact date when the plan will go into effect. This depends on the court’s approval of the amount of the provision for disputed claims. The exchange expects the plan to go into effect in early January 2025. In addition, payments on verified claims in the Convenience Classes will begin within 60 days of execution.
Customers must take action to receive the funds on the first day of distribution. They must open an account with the selected distribution company before the deadline , pass identity verification and complete the necessary tax documents.
FTX files lawsuit to recover assets, including $1.8 billion from Binance
The collapse of FTX in November 2022 marked a turning point in the cryptocurrency industry, revealing one of the largest financial frauds and bankruptcies in recent times. The exchange, once valued at $32 billion, collapsed when it came to light that customer funds had been misappropriated to cover losses at its sister company Alameda Research and other expenses.
This revelation triggered a wave of withdrawals that FTX was unable to meet, forcing it to declare bankruptcy.
A bankruptcy judge in Delaware has approved a resolution plan. Under this plan, FTX will repay creditors with an amount equal to 119% of recognized claims, based on the value of assets at the time of the bankruptcy filing in 2022.
FTX has been busy in court, recently filing more than 20 lawsuits in Delaware to help recover assets for its creditors. It recently attacked Binance, claiming it wants to recover nearly $1.8 billion it says was fraudulently transferred by Sam Bankman-Fried.
