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FTX Begins Customer Repayments Amid Ongoing Recovery Efforts

FTX has initiated repayments to affected customers, starting with claims up to $50,000, with funds available through BitGo and Kraken. The exchange aims to fulfill creditor obligations following its 2024 bankruptcy plan approval.
Published on 2025-02-19

FTX Commences Initial Repayment Phase

FTX has officially started repaying customers affected by its bankruptcy, with the first wave targeting those with claims up to $50,000. These initial distributions are expected to reach customers within one to three business days. The next scheduled payout is set for April 11, as the exchange progresses in meeting its creditor obligations.

Recovery Process and Distribution Channels

John J. Ray III, CEO of FTX Debtors and the recovery trust administrator, expressed satisfaction with the commencement of payments. He acknowledged the complexity of the process and appreciated the patience of customers and creditors. The distributions are being facilitated through BitGo and Kraken, providing a secure means for customers to access their funds.

Bankruptcy Plan and Criticisms

FTX’s bankruptcy plan, approved in October 2024, outlines that 98% of creditors are expected to receive at least 118% of their claim value in cash. However, this decision has faced criticism for not repaying in cryptocurrencies at their value during the 2022 bankruptcy filing.

Legal Consequences

The collapse of FTX also led to legal repercussions. Sam Bankman-Fried, former CEO of FTX, was convicted in November 2023 on charges including wire fraud and conspiracy, receiving a nearly 25-year prison sentence. Caroline Ellison, former CEO of Alameda Research, received a two-year sentence for her involvement in the matter.

This development marks a significant step in addressing the financial fallout of FTX’s bankruptcy, with ongoing efforts to return funds to additional claimants.

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