Last year, FTX, the collapsed crypto exchange, announced it would start distributing funds to investors who lost money through Kraken and BitGo by early January 2025. A recent post on X by FTX creditor Sunil reveals that Kraken has already begun emailing customers about receiving their FTX-distributed funds. He also suggests BitGo may start a similar process soon.
Let’s take a closer look at what this means for creditors!
What Happened to FTX?
FTX, once a leading crypto exchange, fell apart in November 2022 after accusations that its owners had misused customer funds. In 2023, FTX founder Sam Bankman-Fried was convicted of wire fraud and conspiracy, receiving a 25-year prison sentence along with an $11 billion fine.
Court Gives the Green Light!
Recently, the court approved FTX’s Plan of Reorganization, which selected Kraken and BitGo as distribution partners for affected investors. Last month, FTX announced that the first phase of fund distribution would begin in early 2025.
According to Sunil’s post on X, Kraken has already begun sending emails to its customers about receiving FTX-distributed funds. The post also indicates that BitGo could start a similar process soon.
Timeline & Deadlines Under Review
Customers with claims under $50,000 must complete all necessary steps within 60 days of January 3, 2025, meaning the deadline will be March 3, 2025. However, the post notes that there is no set timeline for claims over $50,000, leaving those creditors uncertain.
The distribution process is now underway, giving affected creditors hope. While smaller claims have clear deadlines, the situation remains uncertain for larger claims. More updates are expected as Kraken and BitGo continue their distribution efforts.
For those who’ve waited for justice, the long-awaited distribution is finally in motion!
Source: https://coinpedia.org/news/ftx-funds-distribution-begins-kraken-sends-emails-to-creditors/