The reorganization plan for the now-defunct cryptocurrency exchange FTX officially took effect on January 3, 2025. Users of the exchange who filed claims are expected to be able to receive reimbursements within 60 days with certain criteria in place for the first batch of payouts.

FTX Payment Plan Details

Reorganization Plan Announcement (Source: Ftx)
Reorganization plan announcement (Source: FTX)

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The FTX reorganization plan includes an initial group of “convenience classes” who will be the first to receive their reimbursements. This group primarily includes users claiming $50,000 or less. 98% of FTX customers are expected to receive 119% of the declared value of their funds, based on cryptocurrency prices at the time of the exchange’s bankruptcy in November 2022 according to the plan. The return of the user’s funds is expected to begin within the next 60 days with the caution of phishing attempts.

Ongoing Criticisms and Controversies

According to the payout plan, not all FTX customers have the same terms of the reorganization plan. One major point of contention involves how reimbursements are being calculated—based on cryptocurrency prices at the time of the exchange’s collapse. In the last 2 years, user’s assets have risen by more than 400%, which causes some issues with the value of the payouts. Many people claim that the FTX’s approach is unfair, especially when many users are receiving less than what their funds would be worth today. Although there are many criticisms against the plan, it continues to move forward with assistance from BitGo and Kraken to help distribute the funds.

Conclusion

According to the plan, the first batch of payout will be completed within 60 days for users to claim approximately $50,000. Critics point out issues with the timing and method of calculating reimbursements, but with over $16 billion potentially being paid out, FTX’s final chapter is gradually unfolding.