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FTX Initiates Repayment Process with 60 Days Deadline For Claims Less Than $50k
In a recent development, FTX, the cryptocurrency exchange that collapsed in November 2022, has officially initiated its repayment process for claims less than $50,000. The company has set a deadline of 60 days for customers to submit their claims and receive reimbursement.
Under this plan, approved in October 2024, “convenience classes” – or customers with claims of $50,000 or less – will be prioritized for repayment. This group is expected to receive approximately 119% of their allowed claim amount, including both principal and accrued interest, by early March 2025. In total, this could translate to an estimated payout of $1.2 billion for these individuals.
Meanwhile, customers with claims exceeding $50,000 will be addressed in subsequent distribution phases, drawing from a separate pool estimated at $10.5 billion. While the exact timeline for these larger repayments remains unspecified, the reorganization plan reaffirms FTX’s commitment to equitable distribution among all creditors.
To facilitate this repayment process, FTX has partnered with cryptocurrency firms Kraken and BitGo as distribution managers. Claimants will need to complete Know Your Customer (KYC) procedures and provide necessary tax documentation through the FTX Debtors’ Customer Portal to ensure compliance and secure fund transfers.
In addition to these measures, FTX has issued advisories warning customers to remain vigilant against potential phishing attempts. Official communications will be conducted exclusively through the designated customer portal, and users are advised to verify the authenticity of any correspondence to safeguard their personal information.
FTX’s collapse in 2022 was precipitated by a severe liquidity crisis, leading to its filing for Chapter 11 bankruptcy protection. The subsequent legal proceedings resulted in the conviction and sentencing of former CEO Sam Bankman-Fried to 25 years in prison for fraud.
Source: cryptotale.org
