Finally, it has arrived! FTX announced: The first wave of compensation will start in January next year.

Cryptocurrency exchange FTX declared bankruptcy in November 2022, and now, after more than two years, this bankruptcy case has finally taken a significant step towards resolution.

According to the latest announcement, FTX's bankruptcy reorganization plan will officially take effect on January 3, 2025, and customers and creditors can expect to receive the first batch of compensation payments through Kraken and BitGo within 60 days from the effective date.

FTX stated that the first wave of compensation primarily targets 'Convenience Classes' in the restructuring plan, while the distribution dates for other classes of creditors will be announced later.

FTX's current CEO John J. Ray III stated in a statement: 'Over the past two years, our team has worked tirelessly to successfully recover billions of dollars in assets, finally achieving this goal.'

The bankruptcy plan will take effect in January 2025, initiating compensation, which confirms our tremendous success in asset recovery efforts.

In executing the payments, FTX has currently designated Kraken and BitGo to collaborate in distributing funds to creditors, with a third collaborative platform expected to be announced soon.

In addition, FTX customers can choose to receive funds in stablecoins (such as USDT, USDC).

FTX's bankruptcy plan was approved by U.S. Delaware Bankruptcy Court Judge John Dorsey in October this year. According to FTX at the time, up to 98% of customers would be able to receive 118% of the value of the assets held by FTX at the time of its bankruptcy filing in 2022, in cash as compensation.

Although the aforementioned plan has received support from about 94% of creditors (representing $6.83 billion in claims), FTX's largest creditor representative Sunil Kavuri believes that FTX should compensate customers based on the actual amount of cryptocurrency lost at that time, rather than calculating compensation based on 'the price of coins at the time of bankruptcy.'

"Finally, it has arrived! FTX announced: The first wave of compensation will start in January next year." This article was first published on (Block Tempo).