- April 11, 2025 for customer and creditor claims.
- Complete KYC, tax forms, and onboarding with BitGo or Kraken by May 30, 2025.
- This round follows initial payments to claims under $50K.
FTX has published a comprehensive statement on its repayment and distribution procedure. The proposals bring new liquidity into the procedure and provide certain dates for customers and creditors.
FTX Repayment Details and Fresh Liquidity Injection
From February 18, 2025, FTX will begin paying its creditors. The firm has set aside $16 billion in payments. During Phase 1, between $6.5 billion and $7 billion of new liquidity will be paid out. The creditors whose claims are of values less than $50,000 will be paid in full. The creditors will also be paid an interest rate of 9% per annum on their claims.
The payments will be done via BitGo and Kraken. The exchanges will manage the funds, and the creditors will be paid in their accounts within one to three business days. But for these funds to be paid, the eligible creditors will have to go through Know Your Customer (KYC) verification and complete the necessary tax forms.
For those creditors with more than $50,000 in claims, payment will start in the second quarter of 2025. $17 billion will be distributed to these large claims. Behind the scenes, too, is potential market pressure. 11.2 million SOL tokens worth more than $2 billion are cited by FTX that could make their way to market. Institutions will bring in another $18 billion of fresh liquidity.
Upcoming Distributions and Required Steps
FTX has also authorized the following allocation of customer and unsecured claims. The allocation is to be paid on April 11, 2025. The payment round will pay three classes: Customer Entitlement Claims (Class 5), General Unsecured Claims (Class 6), and newly authorized Convenience Claims that have not been paid. FTX has already begun making payments to customers with claims not exceeding $50,000.
The payment to these customers is being done through BitGo and Kraken, which are the approved distribution platforms for the same. Clients and creditors must undergo a couple of processes in order to claim their payments. These include the satisfaction of KYC verification, the submission of tax forms, and onboarding on BitGo or Kraken. All these processes must be satisfied by May 30, 2025.
This is part of FTX’s Chapter 11 bankruptcy plan. The plan aimed to reimburse distressed customers and creditors as soon and efficiently as possible. FTX Trading Ltd. and the FTX Recovery Trust are managing the whole process. They aim to restore confidence and provide closure for those affected by the collapse.
FTX is still going for a seamless distribution process. The firm is dedicated to transparency and timely action. With these new initiatives and timelines, customers and creditors can now look forward to an improved repayment experience in the next few months.
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