FTX claims payout to begin in January 2025 with $16B distribution
FTX's repayment plan promises to distribute 118% of users original funds
The long-awaited FTX claims payout is set to begin on January 3, 2025, providing $16 billion in restitution to customers and creditors affected by the cryptocurrency exchange's infamous collapse in 2022.
Under a court-approved Chapter 11 bankruptcy plan, 98% of claimants will receive their funds, marking a significant milestone in the crypto industry’s efforts to recover from one of its darkest chapters, according to Coingape.
A Breakdown of the Payout Plan
FTX's repayment plan promises to distribute 118% of users’ original funds—100% of the lost amount plus 18% interest—to those holding claims under $1.2 million as of November 11, 2022.
Larger creditors, however, will receive between 43% and 129% of their balances, depending on legal outcomes and asset liquidation efforts. These payments are facilitated through two major crypto exchanges, Kraken and BitGo, giving users flexibility in the claims process.
FTX has filed 23 lawsuits, including a high-profile case against Binance, to reclaim funds for the payout. Legal recoveries and the liquidation of FTX’s remaining assets have made the substantial reimbursement possible.
The distribution process involves several steps, from KYC verification to tax compliance and service selection, which eligible claimants must complete through the FTX customer portal by January 3.
Ripple Effects on the Crypto Market
The FTX payout could reinvigorate the crypto market as beneficiaries reinvest recovered funds into top digital assets like Bitcoin and Ethereum. While the market remains subdued, the influx of liquidity may catalyze a long-awaited bullish phase.
For victims of the FTX collapse, this payout offers a long-overdue sense of closure, coupled with the possibility of renewed opportunities in the evolving crypto landscape.
Earlier this month, FTX filed a lawsuit against Binance and its co-founder Changpeng Zhao, demanding the return of $1.76 billion, which FTX claims was fraudulently transferred.
