FTX to Begin Recovery Payments in January 2025 with Kraken and BitGo's Assistance.

FTX has announced that it will start distributing recovery payments to its users in January 2025. The distribution process will be facilitated by Kraken and BitGo, two well-known crypto firms. This move comes as part of FTX's approved reorganization plan, which aims to reimburse 98% of its users, with a focus on prioritizing customers with smaller claims.

The reorganization plan, which received approval from a Delaware judge in October, is set to take effect on January 3, 2025. The first round of payments is expected to be distributed within 60 days of this date. Customers with claims of $50,000 or less will be among the first to receive their repayments, representing more than 90% of all creditors involved in the case.

FTX's CEO, John J. Ray III, highlighted the significance of this milestone, stating that the plan's effectiveness and the start of distributions reflect the outstanding success of the recovery efforts. To qualify for payments, customers must complete KYC verification, submit tax forms, and onboard with Kraken or BitGo through the FTX claims portal by January 3.