FTX to begin creditor repayments by March 2025

FTX is nearing completion of its court-approved repayment plan, two years after the exchange collapsed due to corporate mismanagement and fraud.

In a press release on November 21, it was revealed that the FTX estate plans to begin distributing approximately $16 billion to creditors by March 2025. Chapter 11 reorganization is expected to go into effect in January, with first payments starting 60 days later.

Next month, the plaintiffs will finalize arrangements with specialist distribution agencies and the bankruptcy court will make a decision on the “Disputed Claims Provision Amount” in December.

We are pleased to announce that we will begin distributing proceeds in early 2025. The established timeline reflects the experience and continuous work of the team of professionals supporting Debtors who have already recovered billions of dollars on behalf of FTX’s creditors and customers.

John J. Ray III, FTX CEO and chief restructuring officer

Ray III took over as CEO after founder Sam Bankman-Fried filed for Chapter 11 protection in late 2022. Despite his long tenure as bankruptcy administrator, Ray III criticized startling mismanagement at Bankman-Fried’s companies.

Months of recovery efforts and lawsuits eventually resulted in approximately $16 billion in cash and cryptocurrency recovery for the FTX property. Creditors and investors of the defunct exchange are expected to receive most, if not all, of its assets.

Meanwhile, FTX’s founder was found guilty of fraud, although he denied any criminal intent. Bankman-Fried was sentenced to 25 years in prison and plans to appeal the verdict, citing judicial bias.

Members of the inner circle received lighter sentences or no prison time as reward for testifying against the SBF. Former co-founder Gary Wang was released on two years probation. Former Alameda co-CEO Caroline Ellison began serving her two-year sentence on Nov. 7. Disgraced executives lost all profits and assets they had acquired during the Bankman-Fried administration.