The court-approved reorganization plan for FTX89485290169 will take effect on January 3, 2025. Within 60 days after this date, FTX CEO John J. Ray plans to begin payments. The funds are set to be distributed using the Kraken cryptocurrency exchange and the BitGo custodial service. FTX customers will need to undergo a Know Your Customer (KYC) procedure, fill out tax declarations, and register on Kraken or BitGo by the specified date.

First and foremost, funds will be allocated to creditors whose claims do not exceed $50,000. These users account for over 90% of all creditors in the FTX bankruptcy case. The exchange promises to announce the distribution of funds for the remaining creditors later.

Creditors will receive payments in US dollars, and the amount will be calculated based on the value of the assets at the time the exchange filed for bankruptcy in November 2022.

In accordance with the FTX bankruptcy procedure, up to $16.5 billion must be allocated for compensating creditors—this plan was finalized in October. As a result, 98% of creditors are expected to receive 118% of their claims in US dollars.