Failed crypto exchange FTX’s payment plan is now effective. As per the plan, certain FTX clients who may be claiming an amount less than $50,000 may expect to get their funds returned within the next 60 calendar days.
The latest reorganization plan for failed crypto-assets exchange FTX, which is presently going through its extensive bankruptcy proceedings, went into effect on January 3, 2025, and may let former clients begin getting their repayments.
As stated in a January 3, 2025 X update, FTX debtors explained that users requesting funds need to be on the lookout for any malicious phishing emails intended to appear as if they were sent from the official FTX exchange.
The FTX Debtors also remind customers to please remain aware of phishing emails that may look like they are from FTX Debtors and scam sites from channels that may appear to look like the FTX Debtors' Customer Portal.
— FTX (@FTX_Official) January 3, 2025
Clients must have submitted a claim via the official website in order to qualify for their reimbursement. As mentioned in the update, FTX claimed that customers will get repayments within 60 days for the initial group.
As per the FTX plan, the first group of “convenience” classes should be able to receive repayments. This is for all clients claiming $50,000 or any amount less than this figure.
The plan, approved in October of last year, noted that 98% of FTX clients may get paid 119% of the claimed value of their assets.
Repaying clients might be one of the last parts of the FTX collapse and aftermath, starting with the crypto exchange filing for bankruptcy back in November 2022. In addition to this, several FTX executives have now been sent to federal prison for their criminal role in defrauding unsuspecting clients.
Many creditors have actually been critical of the debtors’ plan for claimants to get reimbursements that are based on the prices of crypto-assets the digital assets platform held during the time of bankruptcy filed back in 2022.
Notably, the BTC price surged by over 400% in the two years following the incident and is presently trading at around $98,000 at the time of writing.
It’s worth noting that out of the FTX executives indicted following the digital currency platform’s collapse, just two managed to avoid a prison sentence. This includes ex-engineering Director Nishad Singh as well as FTX co-founder Gary Wang.
As widely reported, former FTX Chief Executive Sam Bankman-Fried, ex-Alameda Research Chief Exec Caroline Ellison, as well as ex-FTX Digital Markets co-CEO Ryan Salame have now been sentenced to many years in prison.
Following these developments, BitGo and Kraken revealed in December that they may help with distributing recovered funds to FTX clients.
If all the service provider’s clients file their complete claims, then the crypto-assets exchange may be expected to reimburse around $16 billion.