FTX, the exchange that declared bankruptcy in November 2022, has finally initiated its first creditor repayment after more than 800 days of restructuring. The first FTX repayment distribution is primarily aimed at "convenience class creditors and customers with claims under $50,000".
FTX officially announced yesterday (18th) that it has begun the first repayment distribution to convenience class creditors, and customers who have completed the claims registration process are expected to receive the payout through the selected distribution service providers BitGo and Kraken within 1 to 3 business days.
Kraken Completes First FTX Repayment Distribution
The community has seen many FTX users posting that they have received payments from Kraken since last night. Bitcoin.com News further reported that Kraken has completed the first fund distribution of FTX assets, paying over 46,000 creditors.
FTX Announces Next Claim Registration Repayment Timeline
FTX also announced the next distribution arrangement in its latest announcement. The next wave of repayments will primarily target FTX Class 5 customer claims (i.e., FTX.com and FTX.US customers with claims exceeding $50,000 as of the filing date), FTX Class 6 general unsecured claims, and those convenience class (claims under $50,000) creditors who were approved but have not yet received a distribution.
The estimated opening date for registration for the next distribution is April 11, 2025, and the distribution is planned to commence on May 30, 2025.
If Not Submitted KYC by 3/1, May Not Receive Claim
Additionally, it is crucial to note that FTX creditors who have not yet completed KYC must do so as soon as possible, as if creditors fail to complete KYC verification by the specified date, they will not be able to receive their payouts.
KYC Deadlines:
- By 4:00 PM EDT on March 1, 2025: The KYC submission process must be initiated, or the claim will be rejected and deleted
- By 4:00 PM EDT on June 1, 2025, all KYC data must be submitted, or the claim will likewise be rejected and deleted
In case of KYC not passing:Even if KYC data is submitted before the deadline, if it fails to pass KYC, the claim may still be rejected.
What If Claim Status Displays Disputed and Amount is TBD?
As for some community members reporting that their Step 9 claim status is still "Disputed" and the claim amount is still "TBD", according to the official FAQ, this may be due to the following (and other) reasons:
- The claim proof has been submitted, but the proof is still under review and has not yet been reconciled
- Your jurisdiction is still under review and you currently do not qualify for the distribution
- You have received a partial distribution from the FTX Australia litigation, and your remaining claim amount is still under review
- You are a Liquid Global exchange customer, and you are still under review as the recognition process for the Singapore Chapter 11 plan is progressing
Typically, if there are any review issues, the official should send the reason for the problem to your creditor's inbox, so you can check your inbox and further inquire with the official customer service.
