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FTX payout plan taking effect today—here’s what to expect
After months of anticipation and uncertainty, the FTX payout plan has officially gone into effect as of January 3, 2025. This significant milestone marks a major step forward for creditors who have been eagerly awaiting the recovery of their assets.
As per the previously outlined plan, credit repayment will commence within 60 days of today’s effective date. While the total distribution is estimated to range between $14.7 billion and $16.5 billion, the initial payout round will not reach this amount as it prioritizes convenience classes – creditors with allowed claims of $50,000 or less. These individuals are expected to receive approximately 119% of their allowed claim amount, including principal and accrued interest, within the allotted timeframe. This amounts to roughly $1.2 billion in total.
Interestingly, creditors with claims exceeding $50,000 will be part of a separate pool worth $10.5 billion, which has a longer distribution timeline. It is crucial for FTX customers to complete KYC verification, submit tax forms through the FTX Debtors’ Customer Portal, and choose either BitGo or Kraken as their distribution manager.
Notably, BitGo and Kraken have been designated by the estate to manage the initial distributions to retail and institutional customers in supported jurisdictions. To facilitate this process, creditors must complete KYC verification, submit tax forms through the FTX Debtors’ Customer Portal, and choose either BitGo or Kraken as their distribution manager.
Notably, K33 analysts estimate that $2.4 billion may flow back into crypto markets following the plan’s execution. This is attributed to the fact that $3.9 billion of total claims were acquired by credit funds, which are unlikely to reinvest in crypto assets. Furthermore, 33% of remaining claims belong to sanctioned countries, insiders, or individuals without KYC verification who may be unable to claim funds.
It remains to be seen how this development will impact the broader cryptocurrency market, but for now, FTX creditors can finally breathe a sigh of relief as they begin the process of reclaiming their assets.
Source: cryptobriefing.com
