FTX To Finalize Bankruptcy Claims By January 2025, With Payouts Starting March

The FTX bankruptcy estate has announced an updated timeline for creditor and former customer reimbursements, aiming to finalize claims by January 2025.

FTX bankruptcy claims will be finalized by January 2025, with payouts beginning in March, the crypto exchange has announced.

To streamline the process, FTX will collaborate with distribution agents starting in December 2024. These agents will manage the payout system and oversee the customer reimbursement portal.

“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,” Ray said.

However, creditors such as Sunil Kavuri have voiced concerns over the method used to calculate reimbursements. According to Kavuri, the amounts are based on the petition date, when cryptocurrency prices were significantly lower.

For instance, at the time, Bitcoin was trading at around $16,000, compared to its current value. This discrepancy could result in substantial losses for users who held贬值 cryptocurrencies on the platform.

To bolster its asset recovery efforts, the FTX estate has initiated legal actions against several parties.

One notable case involves a lawsuit filed against KuCoin to recover $50 million in assets that were allegedly locked on the exchange following FTX's collapse in 2022. The estate has accused KuCoin of delaying the transfer of these assets.

In another development, the FTX estate filed a complaint against Crypto.com in November 2024, seeking to reclaim $11 million in funds that were transferred to the exchange during the period leading up to FTX's bankruptcy filing.

High-profile individuals and companies have also come under the estate's legal scrutiny. On 8 November 2024, FTX initiated legal proceedings against Anthony Scaramucci and his firm, SkyBridge.

The estate is attempting to recover $100 million that was spent on sponsorships and investments involving former FTX CEO Sam Bankman-Fried. Among these investments is a sponsorship deal with the Miami Heat basketball team.

Moreover, Binance and its founder Changpeng Zhao are facing a $1.8 billion lawsuit from the FTX estate over allegations of receiving $1.76 billion in fraudulent transfers prior to FTX's downfall.

In October, the FTX bankruptcy estate reached a $228 million settlement with cryptocurrency exchange Bybit to recover funds for repaying former FTX customers and creditors.

Under the terms of the settlement, FTX will retrieve $175 million in digital assets held by Bybit, along with an additional $53 million in BIT tokens, which will be sold to Mirana Corp, Bybit's investment arm.

FTX originally launched a $1 billion lawsuit against Bybit and Mirana in late 2023, alleging that these entities used special privileges and “VIP” access to preemptively withdraw $327 million in digital assets and cash in the days leading up to FTX's downfall.

Attorneys for FTX's estate argued that Bybit and Mirana received priority withdrawal access from FTX executives, potentially influencing the estate's financial losses during its collapse.

The approval of FTX's reorganization plan earlier in October by Judge John Dorsey provided a boost to these recovery efforts.

Additionally, FTX investors recently dismissed their lawsuit against Sullivan & Cromwell, the law firm that represented the cryptocurrency exchange, after accusing it of complicity in the exchange's alleged fraudulent activities.