On December 17, 2024, FTX announced that its reorganization plan to repay customers will take effect on January 3, 2025. Initial repayments will occur within 60 days, prioritizing customers with claims of $50,000 or less.
FTX CEO John J. Ray III stated the company is prepared to start distributing recoveries to customers. The exchange, which filed for Chapter 11 bankruptcy in late 2022, currently has between $14.7 billion and $16.5 billion available for repayments, aiming to return approximately 119% of the claimed account value to 98% of users.
Notably, customers must complete KYC verification and onboard to either Kraken or BitGo by the effective date to qualify for repayments. This timeline comes after a lengthy bankruptcy process, during which former CEO Sam Bankman-Fried was sentenced to 25 years in prison for fraud.