The FTX estate has announced that it will start reimbursing its users by March. In a statement released on Thursday, the company stated that it expects to conclude its bankruptcy and reorganization efforts early next year, paving the way for the distribution of payments to creditors and customers.
CEO John J. Ray III stated that this timeline reflects the experience and work of the professionals handling the Debtors, who have already recovered billions of dollars for FTX’s creditors and customers. By the end of December, FTX intends to finalize arrangements with its specialized distribution agents in order to disburse funds and announce the exact effective date.
FTX also clarified that customers must have an approved account with a distribution agent, complete KYC verification, and submit required tax forms in order to be eligible to receive the recovered funds before the initial distribution date.
Initially, the estate had stated that customers would receive between 129% and 146% of their claims’ value in fiat currency at the time of bankruptcy. However, some creditors argue that they should be reimbursed in crypto, as the market value of virtually all crypto assets has increased since the exchange collapsed in late 2022.
