Late last year, it was announced that collapsed crypto exchange FTX would begin the distribution of funds to investors who suffered serious losses through Kraken and BitGo by early January, 2025. A recent post on X by FTX creditor Sunil reveals that Kraken has sent emails to customers to receive FTX-distributed funds. He also points out that BitGo may also commence a similar process soon. Let’s dive in for details!
What Happened to FTX?
FTX, once a prominent crypto exchange, collapsed in November 2022, as it failed to sustain allegations that its owners had misused customer funds.
Last year, FTX founder Sam Bankman-Fried was found guilty of wire fraud and conspiracy, and received a tough sentence of 25 years in prison along with a massive fine of $11 billion.
Recently, the court approved the collapsed exchange’s Plan of Reorganisation. The company chose Kraken and BitGo as its distribution partners. Last month, it announced that the first phase of the distribution process would begin in early 2025.
According to Sunil’s X post, Kraken has sent emails to customers notifying them about receiving FTX-distributed funds. The post also suggests that BitGo may commence a similar process in the near future as well.
Timeline for The Completion of Procedures
The post states that customers with claims of less than $50,000 need to complete all required procedures within 60 days. The timeline started on January 3, 2025. This implies that the deadline will be March 3, 2025. Meanwhile, the post highlights that there is no timeline for claims exceeding $50,000.
In conclusion, the FTX claims process has started, bringing hope to affected creditors. While smaller claims have clear deadlines, larger claims remain uncertain.
