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FTX Initiates Repayment Process with 60 Days Deadline For Claims Less Than $50k
In a major breakthrough, FTX has initiated its repayment process for claims less than $50,000, setting a 60-day deadline for affected customers to receive their due amounts. This announcement marks a crucial milestone in the ongoing recovery efforts following the exchange’s collapse in November 2022.
According to the approved plan, “convenience classes” of creditors with claims of $50,000 or less will be prioritized first. This group is expected to receive approximately 119% of their allowed claim amount, comprising both principal and accrued interest, by early March 2025. The estimated total payout for this category amounts to a staggering $1.2 billion.
Customers with claims exceeding the $50,000 threshold will be addressed in subsequent distribution phases, drawing from a separate pool estimated at $10.5 billion. Although the exact timeline for these larger repayments remains unclear, the reorganization plan underscores FTX’s commitment to fair and equitable distribution among all creditors.
To ensure the seamless execution of this repayment process, FTX has partnered with cryptocurrency firms Kraken and BitGo as distribution managers. As part of the protocol, creditors are required to complete Know Your Customer (KYC) procedures and submit necessary tax documentation through the FTX Debtors’ Customer Portal to guarantee compliance and secure fund transfers.
FTX has also taken measures to safeguard against potential phishing attempts by advising customers to remain vigilant. Official communications will be conducted solely through the designated customer portal, and users are urged to verify the authenticity of any correspondence to protect their personal information.
The repayment process marks a significant step forward in FTX’s recovery efforts, which have been ongoing since its bankruptcy filing in 2022. Following the exchange’s collapse, extensive legal proceedings led to the conviction and sentencing of former CEO Sam Bankman-Fried to 25 years in prison for fraud.
Source: cryptotale.org
