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FTX’s journey towards recovery is taking a crucial milestone as it begins repayments under its bankruptcy plan, prioritizing claims under $50,000.
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The claims process requires users to register through the official FTX website, with the expectation that payouts will begin by early 2025.
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Critics have raised concerns regarding the reimbursement terms, particularly how they relate to cryptocurrency valuations from 2022.
FTX initiates its bankruptcy repayments, prioritizing smaller claims and igniting discussions on cryptocurrency price influences and market impacts.
FTX Repayments Are Finally Happening After Two Years Since its Collapse
The FTX Debtors group officially announced the commencement of its reorganization plan today, marking an essential phase in efforts to reimburse creditors. As users proceed, it is vital for them to be wary of phishing scams that attempt to simulate FTX communications. Claims should be filed solely through the official FTX website to ensure authenticity.
According to the details provided by FTX, customers who submitted valid claims could expect their reimbursements processed within 60 days. The first group to be reimbursed includes claimants seeking $50,000 or less, as established in the bankruptcy plan approved in October.
“The FTX Debtors Plan of Reorganization is effective today, January 3, 2025. Today is also the initial distribution record date for holders of allowed claims in the Plan’s Convenience Classes. Separate record and payment dates for other classes of claims will be announced later,” FTX announced on X (formerly Twitter).
The bankruptcy plan outlines that 98% of users will reportedly receive 119% of the declared value of their holdings, a significant recovery rate that might signal the final chapters of the FTX collapse saga. The exchange filed for bankruptcy in November 2022, revealing a prominent fraud case that has led to long prison sentences for several executives. Former CEO Sam Bankman-Fried is currently serving a 25-year prison sentence.