Kraken and BitGo to Distribute First FTX Payments to Creditors

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FTX’s debtors have announced that a reorganization plan, allowing for repayment to customers, will come into effect on January 3. In a notice on December 16, FTX stated that a timeline has been set for the initial distribution of funds to its users, more than two years after filing for bankruptcy under Chapter 11.

The first group of claim holders may receive repayments within 60 days of January 3, 2025, subject to certain conditions, as per the FTX debtors.

BitGo and Kraken, crypto firms, will assist in distributing recoveries to FTX customers, and the exchange will announce the repayment plans for other groups of customers at a later date.

FTX CEO John J. Ray III stated that they are ready to begin distributing recoveries to all customers and creditors, and urge customers to complete necessary steps in order to receive their repayments on time.