FTX Repayment Initiated, Creditors Need to Complete These Claim Steps

By: blockbeats|2025/01/14 16:00:03
0
Share
copy
Original Article Title: "FTX Repayment Expected to Start in February, Creditors Must Complete the Following Claim Steps by 1/20"
Original Article Author: James, BlockTempo

The bankrupt exchange FTX announced in December last year that its restructuring plan approved by the court in October last year officially took effect on January 3, 2025, and the initial repayment distribution to the first batch of creditors will take place within 60 days after that date. The initial repayment distribution is limited to creditors in the "Convenience Category" as defined in the restructuring plan.

Note: The Convenience Category refers to creditors with claims of $50,000 or less, who represent over 90% of all FTX bankruptcy case creditors. It is expected that they will be able to recover 118% of the claim value in USD, while the distribution date for other categories of claims will be announced later.

First Repayment to Start in February

FTX creditor representative Sunil revealed the repayment schedule in a post today. According to the plan, the first round of repayment will target creditors with claims of less than $50,000, totaling approximately $1.2 billion. FTX requires creditors to complete claim registration and other pre-allocation requirements by January 20, with the first repayment expected to start in February and the distribution period may last until March 4.

FTX Repayment Initiated, Creditors Need to Complete These Claim Steps

To receive the initial repayment distribution, creditors in the "Convenience Category" must complete pre-allocation requirements by January 20, 2025, including submitting tax forms (Step 7), selecting and successfully registering with a distribution service provider (Step 8), and undergoing sanctions screening. The complete steps are as follows:

· Log in to the FTX Claims Portal (https://claims.ftx.com) (for clients).

· Complete the required KYC verification by January 3, 2025 (refer to BlockTempo's FTX Claim Application Guide).

· Submit the required tax forms, including the W-8 BEN form (refer to BlockTempo's Tax Form Submission Guide).

· After selecting the allocation service provider BitGo or Kraken in STEP 8, read the registration instructions for the chosen service provider and register an account with BitGo or Kraken by January 20.

BitGo is a globally regulated cryptocurrency custodian, while Kraken is a well-known U.S.-based cryptocurrency exchange offering services such as spot and derivatives trading in up to 190 countries/regions.

FTX Official has stated that creditors who do not meet the requirements by the deadline will not receive an allocation on the initial distribution date but may receive a makeup distribution in subsequent months.

Furthermore, according to Section 7.8 of the restructuring plan, if a holder fails to complete the pre-allocation requirements within 6 months from the initial allocation record date (January 3, 2025), they will forfeit their allocation rights.

Additionally, as per Section 7.14, if a holder receives a request to fulfill the requirements, they must do so within the specified timeframe; otherwise, they will also lose their allocation eligibility.

How Much Compensation Can Creditors Expect?

According to the FTX bankruptcy plan, the company anticipates having as much as $145 billion to $163 billion in cash available for distribution. This plan applies to 98% of creditors, and repayments are calculated based on "the USD price of cryptocurrency on the day of FTX's Chapter 11 bankruptcy filing on November 11, 2022."

Although FTX expects that the vast majority of creditors (claims of $50,000 or less) will be able to recover 118% of the claim value in USD, unless the assets held at FTX are stablecoins, they could still face significant losses.

For example, when FTX filed for bankruptcy protection, the price of BTC was only around $16,000, but the current BTC price is around $94,000. This means that if a creditor held one bitcoin at FTX at that time, they might only receive $16,000, representing about 17% of the current price—an enormous loss.

Original Article Link

-- Price

--

You may also like

OKX Crypto Exchange Layoffs 2026: Institutional Staff Cuts Explained

Learn what the OKX crypto exchange layoffs mean for traders in 2026, including restructuring details and how to protect your portfolio. WEEX analysis.

OKX Star analyzes Binance's competitive advantages: when regulation levels the playing field, competition has just begun

OKX founder Star published a lengthy article, systematically analyzing Binance's competitive advantages over the years: regulatory arbitrage, speculative narrative cycles, social media control, and superficial compliance, stating that the essence of these advantages is not product capability, but ra...

Full version of the debut Q&A! Federal Reserve Chairman Waller: Sticking to the 2% inflation target, establishing five special working groups, individual did not submit the dot plot

Federal Reserve Chairman Waller's debut featured a significant slimming statement, the cancellation of forward guidance, refusal to submit the dot plot, and the establishment of five working groups, vowing to uphold the 2% inflation target, which triggered a sharp decline in U.S. stocks and a surge ...

From Disruptor to Shadow Market: The Crypto Market is Becoming a Colony of Traditional Finance

"Coin-stock linkage" has evolved from the early stage of macro correlation and one-way penetration of emotional funds to the current 3.0 stage, where on-chain perpetual contracts provide extended trading hours and emotional signal value for traditional assets 24/7, and participate in Pre-IPO pricing...

Dalio's important long article: How to position in the current market environment?

Do not confuse the excitement for new technologies with whether those tech stocks are attractive.

DeepSeek Financing Story

DeepSeek's financing insider information exposed: "Four-hour meeting" fully demonstrates Liang Wenfeng's determination for AGI, over a hundred institutions involved, Sequoia and Hillhouse rarely absent, not poaching talent is the hardest red line.

Popular coins

Latest Crypto News

Read more
iconiconiconiconiconiconicon
Customer Support:@weikecs
Business Cooperation:@weikecs
Quant Trading & MM:bd@weex.com
VIP Program:support@weex.com