FTX to Distribute $1.2 Billion: Long-Awaited Payouts Set to Begin

Users with claims of up to $50,000 must complete the required steps by January 20. After this date, FTX is expected to begin processing payments.

According to Sunil Kavuri, a member of the FTX Customer Ad-Hoc Committee, the process is structured to start with smaller claims.

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In a January 11 post on X, he clarified that January 20 marks the deadline for users to meet all "pre-distribution requirements".

Jan 20th: FTX has given until January 20 to fulfil pre-distribution requirements for initial distribution. Repayments likely won’t start before then.

These repayments are part of a restructuring plan approved in October 2024, which aims to reimburse 98% of users based on the value of their holdings at the time of bankruptcy.

While many consider this a positive decision, some creditors have raised concerns about the repayment method. The reimbursements are calculated using cryptocurrency values from November 2022, the time of FTX’s bankruptcy.

Since then, certain cryptocurrencies, like Bitcoin BTC $82,449.96 , have seen price increases. This has left some creditors feeling shortchanged, as they may not benefit from the market’s recovery.

On January 8, FTX clarified that its European branch, FTX EU, has been acquired by a crypto exchange called Backpack. What did the company say? Read the full story.