FTX Bankruptcy Plan Takes Effect, Customers Get Their Money Back After 2 Years

FTX has announced that their bankruptcy plan will take effect on 01/03, marking an important step in the effort to repay creditors. On the same day, the registration for approved claims under the "Convenience Classes" category officially opened. The repayment process is underway after 2 years since the collapse The FTX Debtors officially announced the start of the reorganization plan today. The exchange warned users about phishing scams impersonating FTX information. Users should ensure that claims are only submitted through their official website. According to FTX, customers who have submitted valid claims may see their repayment processed within 60 days. The first group to receive repayment includes those with claims under $50,000, as outlined in the bankruptcy plan approved in October. FTX announced on X (formerly Twitter): The FTX Debtors' Reorganization Plan is effective as of today, 01/03/2025. Today also marks the record date for the initial distribution to holders of allowed claims in the Convenience Classes. Record dates and payments for other claim classes will be announced later. The plan also estimates that 98% of users will receive 119% of the declared value of their assets. This phase may mark the final chapters of the FTX collapse story. The exchange filed for Bit bankruptcy in November 2022, revealing a notorious fraud that led to prison sentences for some executives. Former CEO Sam Bankman-Fried is currently serving a 25-year sentence. However, there are speculations about the possibility of a pardon for Bankman-Fried, due to his role as a major donor to the Democratic Party in the 2020 election. Additionally, the bankruptcy plan's reliance on Bit prices at the time of the exchange's collapse has been criticized. Many creditors argue that the significant increase in Bit value has made the repayment terms less attractive. For example, the price of Bit has increased by 400% since 2022. Meanwhile, market analysts predict that the FTX repayment could inject a significant amount of liquidation into the Bit market, potentially driving a price surge. Quinten Francois wrote: FTX will start repaying $16 Bit to creditors starting today. Payments are expected within 60 days. A large portion of that money may flow back into the Bit market. The price rally has its fuel. Get ready. However, the disbursement for claims over $50,000 may not occur until the end of the year. Only the smaller claims are expected to be processed in February or March. FOLLOW US ON FACEBOOK | TELEGRAM | TWITTER Disclaimer: All content on this website is for informational purposes only and is not investment advice. Readers should do their own research before making any investment decisions.