This is great news for crypto investors who lost their funds when FTX collapsed in 2022. Crypto exchange FTX has announced that its reorganization plan, enabling the repayment of funds to certain customers and creditors, will come into effect on January 3, 2025. Agreements have been signed with exchanges BitGo and Kraken to help distribute funds to customers and creditors. You should have received an e-mail by now!
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Lost in 2022, recovered in 2025: the end of the ordeal for FTX users
More than two years after FTX‘s collapse, the exchange’s customers and creditors could finally get their funds back. Indeed, the crypto exchange FTX has announced that its reorganization plan will come into effect on January 3, 2025. The activation of this plan will have the effect of initiating the distribution of payments to certain customers and creditors.
In a press release a little more detailed, FTX announced that customers and creditors in the plan convenience who will be paid first. Repayment of their funds is scheduled within 60 days of January 3, 2025. The other categories of customers and creditors will be progressively informed of their repayment dates.
The implementation of the plan in January 2025 and the start of distributions reflect the exceptional success of the collection efforts. We are well positioned to begin distributing recoveries to all customers and creditors …
John J. Ray III , Managing Director of FTX Debtors.
After the bankruptcy of FTX in november 2022, a bankruptcy judge approved the exchange’s reorganization plan on October 7. This plan should enable 98% of users to recover around 119% of their lost funds. According to the plan, refunds will be made gradually, starting with users claiming a maximum of $50,000.
Kraken and BitGo to FTX’s rescue
To materialize the repayment of funds to its customers and creditors, FTX has turned to two crypto exchanges. According to the FTXagreements have been signed with crypto exchanges. BitGo and Kraken to distribute funds to users in the jurisdictions they cover. To benefit from the reimbursements, customers and creditors of FTX must therefore register on one of these platforms, in addition to connect to the official funds claim portal.
Reacting to the signing of the contract with FTX, the crypto exchange BitGo is proud to support FTX in its reorganization. The platform promised customers FTX who will choose BitGosecure custody of their assets. In addition to recovering funds, customers can also access other services such as portfolio, trading and staking, says BitGo.
FTX retail users will be able to retrieve their funds securely with BitGo – and take advantage of BitGo’s full suite of services designed to help them securely trade, lend and stack their assets.
Bitgo
FTX customers and creditors lost access to their funds in November 2022 as a result of the collapse of the exchange. FTX’s bankruptcy gave rise to a landmark lawsuit that resulted in 25-year prison sentences for the exchange’s CEO and 2 years for his ex-girlfriend and his employees. More than two years after the exchange’s bankruptcy, customers and creditors can hope to recover their funds.
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