FTX has initiated its reorganization plan, effective January 3, marking a significant step forward after its collapse in November 2022. Creditors are preparing for repayments expected to commence within 60 days. Smaller claims, under $50,000, are prioritized, potentially recovering up to 119% of original claims. However, creditors must be cautious of phishing scams.

Repayments are based on November 2022 crypto values, leading to dissatisfaction among some creditors due to the current higher prices. A reserve fund of $6.5 billion is set aside for disputed claims, ensuring fair payouts.

FTX offers multiple payout options, including fiat and digital assets, in partnership with BitGo and Kraken. This approach contrasts with past cases like Mt. Gox, offering a faster resolution. Despite criticisms over not adjusting reimbursements to current crypto values, the plan provides relief to many creditors.

FTX's reorganization is a pivotal moment for the crypto industry, aiming to rebuild trust and set a precedent for future cases.