The post When Will FTX Users Get Paid? Payment Plan Now in Motion appeared on BitcoinEthereumNews.com.

Three years after FTX’s November 2022 bankruptcy, a reorganization plan began on January 3, enabling user repayments to start. Creditors must complete tax documents and onboard with BitGo or Kraken to receive initial payouts, with FTX aiming to repay up to 98% of losses and some creditors recovering up to 119%. In the wake of one of the most significant collapses in the cryptocurrency space, FTX, once a major player in the digital asset market, has laid out a reorganization plan aimed at repaying affected users. The company, which filed for bankruptcy in November 2022, has been working diligently to recover and restructure its operations amid ongoing legal proceedings. FTX has between $14.7 billion and $16.5 billion available to repay its customers and creditors. In October 2024, Judge John Dorsey of the U.S. Bankruptcy Court for the District of Delaware approved the company’s reorganization plan, outlining a timeline to reimburse 98% of users, with some receiving up to 119% of their claimed account value. The plan took effect on January 3, 2025, marking the start of the repayment process. Repayment Process and Market Implications FTX’s debtors cautioned users on X about potential phishing attempts disguised as communications from the exchange. To be eligible for reimbursement, customers must have submitted claims through the official website; repayments are expected to begin within 60 days for the first group of users.  Repayments to FTX customers are calculated based on their deposits’ November 2022 U.S. dollar value. Many creditors believe the sharp rise in cryptocurrency prices, including Bitcoin’s 400% growth since then, has made these terms less favorable. The company plans to distribute $16 billion, and market experts anticipate this could inject substantial liquidity into the crypto market, potentially sparking a bullish trend. Notably, claims larger than $50,000 might not be processed until later…

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Filed under: News - @ January 4, 2025 10:14 pm