FTX Initiates $16 Billion Repayment to Creditors, Effective Jan 3, Aiming for 119% Recovery

Jan 3, 2025, 10:01 PM

FTX has initiated its bankruptcy reorganization plan, effective as of January 3, 2025, marking the start of a repayment process to its creditors. The company plans to distribute an initial $6.5 to $7.5 billion within 60 days, with a total of $16 billion earmarked for distribution. The first wave of payments targets holders of claims in the 'Convenience Classes,' specifically those claiming under $50,000, with further distributions to other claim categories to be announced later. FTX has partnered with Kraken and BitGo to facilitate these payouts, which are expected to begin by March 2025. The repayment plan aims to return approximately 119% of the amount of allowed claims to 98% of creditors by number within 60 days after the effective date of the plan.