FTX Begins Distributing Funds to Creditors

FTX, the once-thriving cryptocurrency exchange, has begun distributing funds to its creditors, according to on-chain data. Blockchain analytics firm Arkham spotted the distributions, which are being facilitated by Bitgo and US-based crypto exchange Kraken.

Creditors with claims of under $50,000 have started receiving funds, representing approximately $1.2 billion in value. This marks the first wave of repayments since FTX's bankruptcy last year.

FTX's repayment plan was approved by US courts in the fall of 2022. In a statement made last November, FTX CEO John Jay Ray III announced that payments to creditors and customers would begin early following the company's court-approved Chapter 11 Plan of Reorganization, which was set to be effective by early January 2025.

Ray stated, "We are pleased to announce that we will begin distributing proceeds in early 2025. The timeline laid out reflects the experience and continued work of the team of professionals supporting the Debtors, who already have recovered billions of dollars on behalf of FTX’s creditors and customers... While we continue to take actions to maximize recoveries, we are full steam ahead to reach arrangements with our distribution agents and return proceeds to creditors and customers as quickly as possible."