- The repayment plan took effect on January 3 2025.
- Users with claims under $50,000 could get payments within 60 days.
- To receive payments, users must do KYC, submit tax documents, and choose their payout platform.
This repayment plan is a big step forward, but it’s not the end of the story. There’s still a lot to unpack, including who gets paid, how much, and what the process looks like.
Repayment plan announcement. Source: FTX
Who Gets Paid First?
Let’s break it down. Under the plan, FTX users fall into two main groups:
- Convenience Classes
This is the group with claims under $50,000. They’re the priority. If you’re in this group, you’re likely to get your money sooner. The plan promises payments within 60 days, and the recovery rate is set at 119%. That’s your original amount plus a little extra to account for interest.
For example, if you had $10,000 stuck on FTX, you could receive $11,900 back in this first round of payments. This group is estimated to receive around $1.2 billion in total payouts.
- Larger Claims
Users with claims over $50,000 fall into this category. Unfortunately, the timeline for this group isn’t clear yet. They’ll be paid from a separate fund worth $10.5 billion. But the process will take longer, and the exact recovery percentage hasn’t been confirmed.
FTX Bankruptcy Crisis
More News: FTX proposes offer to open liquid accounts to users of bankrupt crypto brokerage Voyager
How to Claim Your Money?
If you’re eligible for repayment, there are a few steps you need to follow:
- Go to the FTX Debtors Customer Portal
This is where everything starts. You’ll find all the necessary tools and instructions here.
FTX Debtors Customer Portal
- Complete KYC Verification
This is a standard process to confirm your identity. Without it, you can’t receive your funds. - Submit Your Tax Documents
This step is mandatory. It ensures that everything is compliant with tax laws. - Choose a Distribution Platform
You’ll need to select either BitGo or Kraken. These two companies are handling the repayment process for FTX.
More News: FSOC urges Congress to pass stablecoin legislation to stabilize global finance
Impact on the Crypto Market
Analysts at K33 believe about $2.4 billion could flow back into crypto as users reinvest their recovered funds.
33% of the remaining funds are linked to sanctioned countries, unverified users, or others who can’t claim their money.
