Bankrupt cryptocurrency exchange FTX has unveiled its timeline for repaying creditors and former clients. This reimbursement payment is scheduled to be finalized in January 2025. Distributions are set to commence within 60 days following the specified deadline.
According to a recent announcement, the defunct exchange will coordinate reimbursement payments with distribution agents in early December, entrusting them with overseeing the payout process and managing the customer payout portal.
Commenting on the announcement, John J. Ray III, CEO and Chief Restructuring Officer of the FTX Debtors, said:
“We are pleased to announce that we will begin distributing proceeds in early 2025. The timeline laid out reflects the experience and continued work of the team of professionals supporting the Debtors, who already have recovered billions of dollars on behalf of FTX’s creditors and customers.”
Customers to Provide KYC
Ray III further noted that FTX will continue to take actions to maximize recoveries. The company is ahead of schedule in reaching arrangements with its distribution agents and returning proceeds to creditors and customers as quickly as possible.
To be eligible for distribution on the initial distribution date, customers must set up an approved account with a Distribution Agent, complete Know-Your-Customer (KYC) verification, and provide the required tax forms before the distribution record date.
Following the approval of the FTX reorganization plan by a U.S. judge in early October, some creditors remained dissatisfied, prompting the FTX bankruptcy estate to launch several lawsuits to recover more assets.
FTX Lawsuits Against Crypto Exchanges
In October, the FTX estate intensified its legal actions against crypto exchanges, starting with a lawsuit against KuCoin. The lawsuit accused the crypto exchange of holding assets belonging to the bankruptcy estate.
The lawsuit aimed to recover approximately $50 million in assets reportedly locked on the exchange since FTX’s collapse in 2022. Subsequently, in November 2024, FTX filed another complaint against Crypto.com to recover $11 million in funds.
Similarly, on November 9, 2024, FTX filed a lawsuit against Anthony Scaramucci and SkyBridge Capital, seeking to recover $100 million spent on sponsorships and investment agreements between Scaramucci and former FTX CEO Sam Bankman-Fried.
Recently, the collapsed exchange filed a lawsuit against leading crypto exchange Binance and its former CEO and co-founder, Changpeng Zhao (CZ). FTX seeks to recover $1.8 billion, which it claimed was fraudulently transferred to Binance.
