FTX Trading Ltd. and the FTX Recovery Trust have announced creditor payments will begin on February 18, 2025, under the Chapter 11 Reorganization Plan.
FTX's Creditor Payment Plan
The first round of distributions will only be available to holders of allowed claims in the Plan's Convenience Classes who have met the necessary steps before distribution can take place. Creditors can receive their distributions one to three business days after the first distribution date.
Bankman-Fried's Family Seeks Pardon
FTX announced it has managed to transfer the funds for initial distributions to BitGo and Kraken. A week ago, it was reported that the parents of FTX co-founder Sam Bankman-Fried were exploring ways to secure a pardon from President Donald Trump for their son, sentenced to 25 years in prison.
Cryptocurrency Mass Withdrawals
FTX informs eligible creditors to contact support with any concerns about their funds. A recent report notes the largest volume of Bitcoin withdrawals from exchanges since FTX collapse, with approximately 47,000 BTC withdrawn.
The announcement of the payment start is a welcome relief for creditors who have been waiting for compensation since FTX's collapse in 2022.
