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The Joint Official Liquidators (JOLs) of FTX Digital Markets. have opened the "Payment Details" stage, marking a pivotal step in the distribution of funds to claimants. Individual customers are now set to receive their distributions via BitGo, offering some closure after the collapse of the exchange in late 2022.
The Convenience Class, comprising customers and creditors with claims under $50,000 or those who opted into the class by reducing their claim values, will receive a single distribution representing their full adjudicated claim value, according to an email sent by the JOLs yesterday.
This payment will also include 9% annual post-petition interest accrued from the reference date of November 11, 2022, to the Initial Distribution Date in February 2025. The Convenience Class is expected to receive approximately 20% in post-petition interest.
FTX’s valuation of assets is locked at their November 2022 values. For example, Bitcoin, pegged at $16,871 per token during the collapse, is now worth roughly $95,000. Similarly, Ethereum holders will receive $1,258 per token compared to its current value of $3,251, and Solana, valued at $16.24 by FTX, now trades at over $200.
Distributions to Convenience Class claimants will be processed through BitGo’s “Go Account.” Claimants are required to set up accounts with BitGo, where their USD fiat payouts will be deposited. New users are greeted with the message "Enter to win a full Bitcoin once your funds are distributed."
Kraken has also been tapped as a distribution partner for certain jurisdictions, offering an incentive for new clients. Kraken has announced fee credits of up to $105 for recipients of FTX funds, which can be used for trading crypto on Kraken Pro.
FTX’s Chapter 11 Plan of Reorganization took effect on January 3, 2025, setting the stage for the initial wave of distributions within 60 days. To qualify, claimants had to meet a series of requirements, including KYC verification, tax documentation, and onboarding with either BitGo or Kraken.
While the impending distributions are a relief to many, many creditors still feel shortchanged, particularly as the crypto market has taken a more positive trajectory since the collapse. “The fixed valuation of claims at November 2022 prices doesn’t reflect the current market reality,” a FTX customer, who declined to be named, told Blockhead. “We’re receiving a fraction of what we’re truly owed.”
The FTX collapse, which saw $8-10 billion in customer funds misused by the exchange and its sister company, Alameda Research, remains one of the largest scandals in crypto history.
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