FTX, the exchange that shook the market with its collapse over two years ago, has just announced plans to return funds to customers and creditors in early 2025.
The first round of repayments will begin within 60 days from January 3, 2025, two months earlier than initially planned. FTX has partnered with two industry giants, Kraken and BitGo, to ensure the distribution process is smooth and transparent. A third partner will be announced soon to join this process.
To qualify for compensation, FTX users must complete mandatory procedures before the plan takes effect, including identity verification (KYC), tax declaration, and account registration on Kraken or BitGo.
Notably, the first round of repayments will prioritize creditors with claims under $50,000, accounting for over 90% of all creditors. Distribution plans for the remaining creditors will be announced in due course.
The compensation value will be calculated based on the amount of crypto assets users held at the time the exchange declared bankruptcy. As of May 2024, FTX has recovered $16.3 billion in assets. However, investors remain at a disadvantage, as compensation is calculated in USD based on values at the time of FTX’s bankruptcy (November 2022) rather than current crypto prices, which have grown significantly over the past two years.
Related: FTX Sues Binance and CZ, Demanding Compensation of Up to $1.76 Billion
In response to this news, the price of FTT token surged nearly 30% to $3.18 and is currently hovering around $3.0.
