FTX is currently wrapping up the process of verifying claims ahead of the deadline set for April 11, 2025. This final step of verification is extremely important for all creditors and customers who wish to be paid back under the ongoing Chapter 11 bankruptcy process.
Claims that are still under review or yet to be accepted shall be indicated as “Disputed Claims” for now. However, such disputed claims can still qualify for a payment once they are duly reviewed and accepted.
The FTX Recovery Trust is working to reconcile these claims, and for some customers, jurisdictional issues may delay the distribution of payments. FTX customers who received partial distributions from proceedings in Australia are also having their claims reviewed to ensure that they receive the full amount due.
Similarly, claims related to customers in places like Singapore are under review as part of the Chapter 11 plan. For now, these claims are still being sorted out, according to the company’s blog post.
For those customers eligible for repayment, the distribution process is being handled through the FTX Customer Portal. Step 9 of this portal is crucial for tracking claim status, but access is limited to customers in Class 7A and 7B with claims under $50,000. Customers who have larger claims won’t be able to access this step until later, right before the final distribution date, which will be announced later on.
To be eligible for the first round of repayments, which is scheduled for January 2025, customers must meet several requirements, such as submitting tax forms, completing onboarding with a distribution service provider, and passing sanctions checks.
The deadline for these tasks is January 20, 2025. If a customer misses this deadline, they will not receive their payment in the initial round but will instead have to wait for future distributions.
If the creditors fail to meet the standards in six months from the initial payment, they may miss their opportunity to receive any payments at all. In addition, some customers will have to perform additional checks in order for their claims to be finished.
For FTX EU customers, the situation is a little different. After FTX EU was transferred to a third-party buyer, claims related to FTX EU were no longer part of the Chapter 11 bankruptcy proceedings.
Rather, these customers must go through the FTX EU Process, which is independent. For claims related to cryptocurrency against FTX EU, these customers are still eligible to receive payments under FTX’s U.S. bankruptcy process.
Looking ahead to the future, the next large distribution date is May 30, 2025, with a cutoff date of April 11, 2025, for the completion of all pre-distribution processes. Those customers who do not meet this deadline will have their payment held up, so it is extremely important that customers have their claims properly substantiated and all necessary steps taken before the ultimate deadline.
Also Read: Tokenized Gold Trading Hits $1B for First Time Since 2023
