FTX Sets May Deadline for Next Creditor Repayments

This follows the initial payouts that began on February 18 for creditors in the “Convenience Class”, which includes those with claims of up to $50,000.

The upcoming distribution will cover “Class 5 Customer Entitlement Claims” and “Class 6 General Unsecured Claims”. This includes former FTX customers who had assets on the exchange when it collapsed, as well as other creditors such as service providers and trading partners.

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To qualify for the May repayments, creditors must verify their claims by April 11. Those with claims exceeding $50,000 will also need to select a distribution agent by this deadline, according to FTX creditor and advocate Sunil Kavuri.

John J. Ray III, the plan administrator of the FTX Recovery Trust, stated in the announcement:

The patience and cooperation of our customers and creditors have been essential throughout this process. Our work continues as we focus on recovering more funds and repaying additional claim classes.

Currently, Kraken $401.52M and BitGo are handling the repayment process. Creditors must complete identity verification, submit tax forms, and onboard with one of these platforms to receive their payments. FTX has also warned users to be cautious of phishing attempts posing as official communications.

Meanwhile, Binance $7.65B and the Securities and Exchange Commission (SEC) agreed to postpone their legal dispute for 60 days. Why? Read the full story.