FTX Repayment Plan Is Finally Here: When Will Users Get Their Money Back?

Tags: ftx

Key Takeaways:

• The repayment plan took effect on January 3 2025.
• Users with claims under $50,000 could get payments within 60 days.
• To receive payments, users must do KYC, submit tax documents, and choose their payout platform.

This repayment plan is a big step forward, but it’s not the end of the story. There’s still a lot to unpack, including who gets paid, how much, and what the process looks like.

Repayment plan announcement. Source: FTX

Who Gets Paid First?

Let’s break it down. Under the plan, FTX users fall into two main groups:

1. Convenience Classes

This is the group with claims under $50,000. They’re the priority. If you’re in this group, you’re likely to get your money sooner. The plan promises payments within 60 days, and the recovery rate is set at 119%. That’s your original amount plus a little extra to account for interest.

For example, if you had $10,000 stuck on FTX, you could receive $11,900 back in this first round of payments. This group is estimated to receive around $1.2 billion in total payouts.

2. Larger Claims

Users with claims over $50,000 fall into this category. Unfortunately, the timeline for this group isn’t clear yet. They’ll be paid from a separate fund worth $10.5 billion. But the process will take longer, and the exact recovery percentage hasn’t been confirmed.

FTX Bankruptcy Crisis

How to Claim Your Money?

If you’re eligible for repayment, there are a few steps you need to follow:

1. Go to the FTX Debtors Customer Portal
   This is where everything starts. You’ll find all the necessary tools and instructions here.

FTX Debtors Customer Portal

2. Complete KYC Verification
   This is a standard process to confirm your identity. Without it, you can’t receive your funds.
3. Submit Your Tax Documents
   This step is mandatory. It ensures that everything is compliant with tax laws.
4. Choose a Distribution Platform
   You’ll need to select either BitGo or Kraken. These two companies are handling the repayment process for FTX.

Impact on the Crypto Market

Analysts at K33 believe about $2.4 billion could flow back into crypto as users reinvest their recovered funds.

33% of the remaining funds are linked to sanctioned countries, unverified users, or others who can’t claim their money.