FTX Repayment Initiated, Creditors Need to Complete These Claim Steps
Original Article Title: "FTX Repayment Expected to Start in February, Creditors Must Complete the Following Claim Steps by 1/20"
Original Article Author: James, BlockTempo
The bankrupt exchange FTX announced in December last year that its restructuring plan approved by the court in October last year officially took effect on January 3, 2025, and the initial repayment distribution to the first batch of creditors will take place within 60 days after that date. The initial repayment distribution is limited to creditors in the "Convenience Category" as defined in the restructuring plan.
Note: The Convenience Category refers to creditors with claims of $50,000 or less, who represent over 90% of all FTX bankruptcy case creditors. It is expected that they will be able to recover 118% of the claim value in USD, while the distribution date for other categories of claims will be announced later.
First Repayment to Start in February
FTX creditor representative Sunil revealed the repayment schedule in a post today. According to the plan, the first round of repayment will target creditors with claims of less than $50,000, totaling approximately $1.2 billion. FTX requires creditors to complete claim registration and other pre-allocation requirements by January 20, with the first repayment expected to start in February and the distribution period may last until March 4.

To receive the initial repayment distribution, creditors in the "Convenience Category" must complete pre-allocation requirements by January 20, 2025, including submitting tax forms (Step 7), selecting and successfully registering with a distribution service provider (Step 8), and undergoing sanctions screening. The complete steps are as follows:
· Log in to the FTX Claims Portal (https://claims.ftx.com) (for clients).
· Complete the required KYC verification by January 3, 2025 (refer to BlockTempo's FTX Claim Application Guide).
· Submit the required tax forms, including the W-8 BEN form (refer to BlockTempo's Tax Form Submission Guide).
· After selecting the allocation service provider BitGo or Kraken in STEP 8, read the registration instructions for the chosen service provider and register an account with BitGo or Kraken by January 20.
BitGo is a globally regulated cryptocurrency custodian, while Kraken is a well-known U.S.-based cryptocurrency exchange offering services such as spot and derivatives trading in up to 190 countries/regions.
FTX Official has stated that creditors who do not meet the requirements by the deadline will not receive an allocation on the initial distribution date but may receive a makeup distribution in subsequent months.
Furthermore, according to Section 7.8 of the restructuring plan, if a holder fails to complete the pre-allocation requirements within 6 months from the initial allocation record date (January 3, 2025), they will forfeit their allocation rights.
Additionally, as per Section 7.14, if a holder receives a request to fulfill the requirements, they must do so within the specified timeframe; otherwise, they will also lose their allocation eligibility.
How Much Compensation Can Creditors Expect?
According to the FTX bankruptcy plan, the company anticipates having as much as $145 billion to $163 billion in cash available for distribution. This plan applies to 98% of creditors, and repayments are calculated based on "the USD price of cryptocurrency on the day of FTX's Chapter 11 bankruptcy filing on November 11, 2022."
Although FTX expects that the vast majority of creditors (claims of $50,000 or less) will be able to recover 118% of the claim value in USD, unless the assets held at FTX are stablecoins, they could still face significant losses.
For example, when FTX filed for bankruptcy protection, the price of BTC was only around $16,000, but the current BTC price is around $94,000. This means that if a creditor held one bitcoin at FTX at that time, they might only receive $16,000, representing about 17% of the current price—an enormous loss.
You may also like

Wall Street's Hottest Trades See Exodus

Vitalik Discusses Ethereum Scaling Path, Circle Announces Partnership with Polymarket, What's the Overseas Crypto Community Talking About Today?

Believing in the Capital Markets - The Essence and Core Value of Cryptocurrency

Polymarket's 'Weatherman': Predict Temperature, Win Million-Dollar Payout
$15K+ Profits: The 4 AI Trading Secrets WEEX Hackathon Prelim Winners Used to Dominate Volatile Crypto Markets
How WEEX Hackathon's top AI trading strategies made $15K+ in crypto markets: 4 proven rules for ETH/BTC trading, market structure analysis, and risk management in volatile conditions.

A nearly 20% one-day plunge, how long has it been since you last saw a $60,000 Bitcoin?

Raoul Pal: I've seen every single panic, and they are never the end.

Key Market Information Discrepancy on February 6th - A Must-Read! | Alpha Morning Report

2026 Crypto Industry's First Snowfall

The Harsh Reality Behind the $26 Billion Crypto Liquidation: Liquidity Is Killing the Market

Why Is Gold, US Stocks, Bitcoin All Falling?

Key Market Intelligence for February 5th, how much did you miss out on?

Wintermute: By 2026, crypto had gradually become the settlement layer of the Internet economy

Tether Q4 2025 Report: USDT Market Cap Nears $190 Billion, Multiple Metrics Reach All-Time Highs

Kyle Samani's about-face, one of the biggest believers in web3, has also left the industry

Bhutan Quietly Sells Over $22M in Bitcoin, Drawing Speculation Over Possible Moves
Key Takeaways Bhutan has transferred over $22 million in Bitcoin from sovereign wallets in the past week. The…

BitMine Endures a $7B Unrealized Loss as Ethereum Dips Below $2,100
Key Takeaways BitMine is facing a significant financial challenge with an unrealized loss of over $7 billion in…

Trump-Linked World Liberty Financial Under Scrutiny Following $500 Million UAE Stake
Key Takeaways A U.S. House investigation is examining a $500 million UAE stake in Trump-related World Liberty Financial.…
Wall Street's Hottest Trades See Exodus
Vitalik Discusses Ethereum Scaling Path, Circle Announces Partnership with Polymarket, What's the Overseas Crypto Community Talking About Today?
Believing in the Capital Markets - The Essence and Core Value of Cryptocurrency
Polymarket's 'Weatherman': Predict Temperature, Win Million-Dollar Payout
$15K+ Profits: The 4 AI Trading Secrets WEEX Hackathon Prelim Winners Used to Dominate Volatile Crypto Markets
How WEEX Hackathon's top AI trading strategies made $15K+ in crypto markets: 4 proven rules for ETH/BTC trading, market structure analysis, and risk management in volatile conditions.