FTX's bankruptcy assets have updated the repayment timeline for former creditors and customers — to be completed by January 2025 — with initial payments expected in March 2025.
According to the November 21 announcement from the former cryptocurrency exchange, FTX will arrange repayment distributions with distribution agents in early December, who will handle the payment process and manage the payment gateway for customers. John J. Ray III, the interim CEO overseeing FTX's bankruptcy, stated:
"As we continue to work to maximize recoveries, we are working diligently to reach agreements with distribution agents and to make distributions to creditors and customers as soon as practicable."
While FTX's restructuring plan was approved by a U.S. judge in early October, not all of FTX's creditors are satisfied with the plan, and FTX's bankruptcy estate has initiated a series of lawsuits in an effort to recover additional assets.
Summary of FTX creditor recoveries. Source: Kroll restructuring
FTX bankruptcy estate files multiple lawsuits
A group of FTX creditors led by Sunil Kavuri previously objected to the repayment plan due to the payments being calculated based on the filing date, when digital asset prices were much lower than current levels. For example, Bitcoin (BTC) was only trading around $16K when the creditor claims were filed.
In October, the FTX estate ramped up lawsuits against cryptocurrency exchanges, entities alleged to be holding assets belonging to the bankruptcy estate, starting with a lawsuit against Kucoin.
This lawsuit seeks to recover around $50 million in assets allegedly locked on the exchange since FTX's collapse in 2022. Then, in November 2024, the bankruptcy estate filed a claim against Crypto.com to reclaim $11 million.
On November 8, 2024, FTX launched a lawsuit against Anthony Scaramucci and SkyBridge Capital to recover $100 million paid for sponsorship and investment contracts between Scaramucci and former FTX CEO Sam Bankman-Fried.
Binance and founder Changpeng Zhao are also facing a $1.8 billion lawsuit from the FTX estate over allegations that Binance and Zhao received around $1.76 billion in fraudulent transfers from FTX before the exchange collapsed in 2022.
