More than two years after the cryptocurrency exchange filed for bankruptcy, the first group of FTX claimants could see recovery payments distributed as early as January.
Debtors representing defunct cryptocurrency exchange FTX in the firm’s bankruptcy case announced that a reorganization plan paving the way for customers to be repaid would be effective on Jan. 3.
In a Dec. 16 notice, FTX said it had set up a timeline for the initial distribution of funds to the exchange’s users, more than two years after the firm filed for Chapter 11 bankruptcy protection. According to the FTX debtors, the first group of claim holders can expect repayments within 60 days of Jan. 3, 2025, subject to certain conditions.
The debtors said that crypto firms BitGo and Kraken would assist in distributing recoveries to FTX users. Other groups of customers expecting repayments “will be announced in due course,” according to the exchange.
