FTX Sets January 20 Deadline for Repayments, Payouts Start in February

FTX, the collapsed cryptocurrency exchange, is returning over $1.2 billion to users who have been locked out of their funds for more than two years.

FTX users who are entitled to up to $50,000 in digital assets must fulfill the necessary pre-distribution requirements by January 20 to qualify for repayment. Sunil, a well-known FTX creditor, has indicated that the exchange is expected to begin processing claims for amounts up to $50,000 after this deadline.

FTX repayments

Initial Distribution Schedule

Claims < $50k = $1.2bn

Jan 20th: FTX has given until 20th Jan to fulfil pre distribution requirements for initial distribution

Repayments likely won’t start before then

Feb 25: Likely (up to 4th Mar)
— Sunil (FTX Creditor Champion) (@sunil_trades) January 12, 2025

The January 20 deadline coincides with President-elect Donald Trump’s inauguration. Some speculate that the upcoming repayments from FTX could inject significant capital into the crypto market, potentially fueling further growth.

As part of FTX’s approved restructuring plan from October 2024, users owed up to $50,000 will be prioritized in the first wave of payments.

However, the repayment model has faced criticism for reimbursing creditors based on cryptocurrency prices at the time bankruptcy rather than current market values. This is particularly significant for users who held Bitcoin, as the price of the digital asset has surged considerably since FTX’s collapse. As of writing, Bitcoin is valued at $95,970, based on data from CoinGecko.

Kraken and BitGo To Help With FTX Repayments

In December 2024 a press release confirmed that crypto wallet service BitGo and crypto exchange Kraken would assist in the repayment process, by handling the technical and logistical aspects of distributing funds.

Both BitGo and Kraken have considerable experience in the crypto space, making them trusted partners for this task.

With these collaborations, FTX aims to rebuild trust with its user base and the broader cryptocurrency community, signaling that it is taking steps toward rectifying the damage caused by its collapse.

While the process is ongoing and will take time, the involvement of well-established firms like BitGo and Kraken is a positive sign for creditors looking to recover their funds.

Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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