FTX, the failed crypto-exchange, has started the first cycle of reimbursements, announcing now that the next distribution will take place in May 2025. Customers should expect to receive their funds within 1-3 business days.
FTX and the refunds: the first cycle has started while the next is in May 2025
According to what is reported, on February 18, FTX began sending the first cycle of reimbursements to holders of admitted claims in FTX’s convenience classes. Customers should expect to receive the funds within 1-3 business days.
Not only that, in addition to this “initial distribution,” the failed crypto-exchange has also announced the date of the “next distribution.”
In fact, the holders of admitted claims of Class 5 Customer Entitlement Claims and Class 6 General Unsecured Claims of FTX will be able to register on April 11, 2025.
Once admitted, such clients will be able to receive their refunds with the next distribution that has been scheduled for May 30, 2025.
At the moment, the crypto-exchanges of Kraken and BitGo are the two entities facilitating the reimbursements. To participate in the distribution, creditors must complete the Know Your Customer (KYC) verification, submit the required tax forms, and onboard with BitGo or Kraken.
FTX and the official sending of refunds from the failed crypto-exchange
More than two years have passed since the collapse of FTX, yet the official sending of the first wave of refunds has only just occurred.
Already last month, in fact, the reorganization plan of FTX provided that credit holders with amounts less than 50,000 dollars had to submit their requests within 60 days. Finally, the first recovery cycle was initiated yesterday.
In this regard, John J. Ray III, administrator of the FTX Recovery Trust plan, stated:
“We are pleased to begin the initial distributions today and to set the schedule for the next distribution. FTX appreciates the patience and cooperation of our customers and creditors during this complicated process. Our work is not finished: we intend to continue our recovery efforts and return funds to other classes of claims.”
The next distribution of refunds in May 2025 must therefore include credits with a value exceeding 50,000 dollars.
The reorganization plan currently underway for FTX has estimated that the total refunds to be distributed to holders amount to 16 billion dollars.
The impact on the crypto market
While the FTX reorganization plan has begun, all eyes are on the crypto market and on what impact there might be.
At the time of writing, in the top 10 crypto there are price pump and dump movements in the last seven days, which are generally under 5%.
BTC is worth $95,500, even though it has been more than three weeks that BTC seems to have a value fluctuating around $96,000, with lows down to $93,000 and highs up to $99,000.
Solana (SOL), on the other hand, is the only crypto in the top 10 in a bear dump of -15% compared to a week ago.
Recently on Solana, there has been talk of the 11.2 million SOL from the FTX bankruptcy auction that will be unlocked on March 1st, with a total value of 2.06 billion dollars. This event could influence the liquidity and stability of the SOL price, considering that the platform has already sold 41 million SOL in three separate auctions.