FTX plans to start creditor repayments from February 18, 2025, based on cryptocurrency prices from November 2022.
FTX Creditor Repayments Begin
According to the latest reports, FTX will start its approximately $16 billion creditor repayments on February 18. The first phase involves repayments between $6.5 billion and $7 billion, and the payouts are reportedly based on November 2022 prices. However, since November last year, when Bitcoin was trading above $16,000, the digital asset has surged significantly, which might affect the creditors' repayment amounts.
Progress in Chapter 11 Reorganization Plan
In November 2024, FTX announced significant progress in finalizing the steps necessary to activate its Chapter 11 reorganization plan. This marked a key milestone in the company's ongoing bankruptcy proceedings and paved the way for creditor and customer distributions starting this year.
FTX Funds Distribution Timeline
The timeline reflects the dedication of the team and the progress made in recovering billions of dollars on behalf of creditors and customers. In December 2024, FTX finalized agreements with specialized distribution agents who manage global recoveries. By the end of December, the court was expected to approve the Disputed Claims Reserve Amount, and in January 2025, the plan became effective.
Customers must complete specific steps to receive distributions, including setting up an approved account and completing KYC verification.
