The FTX bankruptcy estate has updated its timeline for the creditor and former customer reimbursements — which should be finalized in January 2025 — and initial payouts are expected in March 2025.
According to the Nov. 21 announcement from the former crypto exchange, FTX will arrange reimbursement payments with distribution agents in early December, who will handle the payout process and manage the customer payout portal. John J. Ray III, the interim CEO presiding over the FTX bankruptcy, issued the following statement:
“While we continue to take actions to maximize recoveries, we are full steam ahead to reach arrangements with our distribution agents and return proceeds to creditors and customers as quickly as possible.”
Despite the approval of the FTX reorganization plan by a US judge in early October, not all FTX creditors were happy with the reorganization plan, and the FTX bankruptcy estate initiated a series of lawsuits in an attempt to recover more assets.
FTX creditor recovery summary. Source: Kroll restructuring
Related: FTX filed for bankruptcy 2 years ago — What’s happening now?
FTX bankruptcy estate files a cascade of lawsuits
A group of FTX creditors led by Sunil Kavuri previously decried the reimbursement plan due to the payout amounts being calculated per the petition date when digital asset prices were much lower than they are currently. For comparison, Bitcoin (BTC) was trading at roughly $16,000 when the creditor petition was filed.
In October, the FTX estate ramped up lawsuits against crypto exchanges, which were accused of holding assets belonging to the bankruptcy estate, beginning with a lawsuit against the KuCoin exchange.
The lawsuit sought to recover roughly $50 million in assets allegedly locked on the exchange since the collapse of FTX in 2022. Later, in November 2024, the bankruptcy estate filed a complaint against Crypto.com to reclaim $11 million in funds.
On Nov. 8, 2024, FTX initiated a lawsuit against Anthony Scaramucci and SkyBridge Capital to recoup $100 million spent on sponsorship and investment deals inked between Scaramucci and former FTX CEO Sam Bankman-Fried.
Binance and founder Changpeng Zhao are also facing a $1.8 billion lawsuit from the FTX estate over allegations that Binance and Zhao received approximately $1.76 billion in fraudulent transfers from FTX before the exchange’s collapse in 2022.
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