An initial batch of customers of bankrupt exchange FTX are beginning to receive their funds over the next few days, with others set to get their share in the coming months.
Convenience class customers, those claiming up to $50,000 will begin seeing their funds in the next one to three business days, according to a statement released Tuesday by FTX. The next round of distributions will take place on April 11, FTX said.
"We are pleased to commence initial distributions today and set the timeline for our next distribution," said John J. Ray lll, the plan administrator of the FTX recovery trust and FTX Debtors CEO. "FTX appreciates our customers and creditors' patience and collaboration throughout this complicated process. Our work is not over – we intend to continue our recovery efforts and returning funds to additional claim classes."
Funds will be available through BitGo and Kraken, FTX said.
FTX's bankruptcy plan was approved by a Delaware judge in October 2024, two years after the exchange filed for bankruptcy. Under the plan, 98% of creditors will receive at least 118% of their claim value in cash. The plan garnered criticism from some, including Sunil Kavuri, a representative of the largest FTX creditor group. Kavuri said the estate should pay out cryptocurrencies in kind rather than the dollar value when the exchange filed for bankruptcy back in 2022.
FTX's former CEO, Sam Bankman-Fried, was found guilty in November 2023 of seven criminal counts, including two counts each of wire fraud and conspiracy to commit wire fraud, and was sentenced to nearly 25 years in prison. Sister trading firm Alameda also subsequently fell, and its CEO Caroline Ellison was sentenced to two years for her role in the downfall of FTX.
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