FTX's $7B Phase 1 Settlement Imminent; Q2 Plan for Remaining Customers

FTX's Phase 2 Settlement Expected in Q2, with Phase 1 Settling Around $7 Billion Soon

FTX, the once-thriving cryptocurrency exchange, is set to begin its Phase 1 settlement process, with an expected payout of around $7 billion. This initial phase is scheduled to commence on February 18, 2025, and will be calculated based on the price level in November 2022.

However, not all customers will be eligible for this first-round distribution. FTX has sent email notifications to customers who do not meet the requirements, including those with pending claims, claims exceeding $50,000, and those who have not completed KYC, tax, and dealer-related requirements. These customers will be included in a subsequent distribution plan scheduled for the second quarter of 2025.

The total repayment amount for Phase 1 is estimated to be between $65 billion and $70 billion. This significant figure underscores the magnitude of the FTX collapse and the ongoing efforts to restore funds to its customers.

The FTX saga has been a stark reminder of the risks and challenges associated with the cryptocurrency industry. As the market continues to evolve, investors and regulators alike must remain vigilant and adapt to the changing landscape.