FTX to Begin Creditor Payouts in Early 2025 with Kraken and BitGo as Key Partners

FTX has announced that creditor payouts will begin by March 2025 as part of its court-approved restructuring plan, effective January 3, 2025. To facilitate a smooth and secure distribution process, FTX has partnered with BitGo and Kraken to manage fund distributions, including stablecoin payments, for retail and institutional creditors. FTX CEO John J. Ray III urged creditors to act promptly by completing key requirements, such as KYC validation, tax form submissions, and onboarding through the official Customer Portal, to ensure timely payments.

The initial distributions will target creditors in the "Convenience Classes" of FTX's reorganization plan, with a registration deadline of January 3, 2025, and a mandatory 21-day objection period for transferred claims. Payment dates for other creditor classes will follow later. FTX has also warned creditors to stay alert for phishing scams, emphasizing that official communications will only be through verified channels and advising users to avoid sharing sensitive information or connecting external wallets outside the official Customer Portal.

The approved $16.5 billion recovery plan, projected to drop to $14.7 billion after cash conversions, marks a critical milestone for the 9 million creditors affected by FTX’s collapse. The exchange’s downfall in November 2022, caused by the mismanagement of customer funds under founder Sam Bankman-Fried, remains one of the most significant financial failures in cryptocurrency history, freezing billions in customer assets.

FTX’s upcoming repayments, facilitated by partnerships with BitGo and Kraken, mark a significant milestone in the company’s recovery efforts, emphasizing transparency, security, and compliance. With cryptocurrencies like Bitcoin near record highs, the distributions offer a crucial opportunity for creditors to regain financial footing, provided they complete the necessary steps promptly to ensure timely payouts.