When will FTX users get paid? Payment plan now in motion

• Three years after FTX's bankruptcy in November 2022, a reorganization plan began on January 3, allowing consumer repayments to begin.
• Creditors must fill out tax documents and get on board with BitGo or Kraken to receive initial payments, with FTX aiming to repay up to 98% of losses and some creditors receiving back up to 119%.

As a result of one of the most significant collapses in the cryptocurrency space, FTX, once a major player in the digital asset market, has drawn up a reorganization plan aimed at paying affected users ​​​​​​​back. The company, which filed for bankruptcy in November 2022, has been working diligently to recover and restructure its operations amid ongoing legal proceedings.

FTX has between $14.7 billion and $16.5 billion available to repay its customers and creditors. In October 2024, Judge John Dorsey of the US Bankruptcy Court for the District of Delaware approved the company's license. reorganization plan, outlining a timeline to refund 98% of users, with some receiving up to 119% of their claim account value. The plan became effective on January 3, 2025, marking the beginning of the repayment process.

Reimbursement Process and Market Outcomes

FTX creditors warned users on X about phishing attempts that may be disguised as communications from the exchange. To qualify for a refund, customers must submit claims through the official website; Repayments are expected to begin within 60 days for the first group of users.

Repayments to FTX customers are calculated based on their investments' November 2022 US dollar value. Many creditors believe that the sharp rise in cryptocurrency prices, including Bitcoin's growth of 400% since then, has made these terms so favorable. The company plans to release $16 billion, and market experts expect that this could bring significant liquidity into the crypto market, which could trigger a bullish trend.

In particular, claims over $50,000 may not be processed until later this year, while smaller claims are expected to be completed by February or March. As previously reported by CNFcreditors have to follow certain steps to get their distributions.

This process involves accessing the FTX portal, completing KYC requirements, submitting tax documents, and setting up accounts with Kraken or BitGo. If all users submit complete applications, the exchange could pay around $16 billion.

Caroline Ellison, former CEO of Alameda Research and ex-girlfriend of Sam Bankman-Fried, was sentenced to two years in prison after pleading guilty to seven counts of fraud and conspiracy. She was a key witness in the Bankman-Fried case. Her expected release date is now July 20, 2026, which is three months earlier than expected. In contrast, Bankman-Fried received a 25-year prison sentence, and his release date remains unspecified on the prison's website.

John Ray III was named CEO of the FTX cryptocurrency exchange after it collapsed and initially expressed optimism about the possibility of restarting the exchange. Despite these efforts, investors did not respond with any positive enthusiasm for the revival of the failed platform