FTX has announced that its bankruptcy plan took effect on January 3, marking a critical step in its efforts to reimburse creditors.
On the same day, registration for approved claims under the “Convenience Classes” category officially opened.
FTX Repayments Are Finally Happening After Two Years Since its Collapse
The FTX Debtors group officially announced the commencement of the reorganization plan today. The exchange warned users about phishing scams designed to impersonate FTX communications. Users should ensure that claims are filed only through its official website.
According to FTX, customers who have submitted valid claims may see their reimbursements processed within 60 days. The initial group to receive repayments includes claimants seeking $50,000 or less, as outlined in the bankruptcy plan approved in October.
“The FTX Debtors Plan of Reorganization is effective today, January 3, 2025. Today is also the initial distribution record date for holders of allowed claims in the Plan’s Convenience Classes. Separate record and payment dates for other classes of claims will be announced later,” FTX announced on X (formerly Twitter).
The plan also estimates that 98% of users will receive 119% of the declared value of their holdings. This phase could mark the closing chapters of the FTX collapse saga.
The exchange declared bankruptcy in November 2022, unraveling a high-profile fraud that led to prison sentences for several executives. Former CEO Sam Bankman-Fried is currently serving a 25-year prison term.
However, there is speculation about a potential presidential pardon for Bankman-Fried. This is due to his role as a major donor to the Democratic Party during the 2020 election.
Also, the bankruptcy plan’s reliance on crypto prices at the time of the exchange’s collapse has sparked criticism.
Many creditors argue that significant increases in cryptocurrency values have made the reimbursement terms less favorable. For instance, Bitcoin’s price has increased by 400% since 2022.
Meanwhile, market analysts predict that FTX repayments could inject substantial liquidity into the crypto market, potentially fueling a bull run.
“FTX will repay $16 billion to creditors starting today. Payments are expected within 60 days. A big chunk of that $$$ might flow BACK INTO CRYPTO. The bull run just got its fuel. Buckle up,” wrote influencer Quinten Francois.
However, disbursements for claims over $50,000 may not occur until later in the year. Only smaller claims are expected to be processed by February or March.
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