The reorganization plan for defunct cryptocurrency exchange FTX, still going through bankruptcy proceedings, took effect on Jan. 3 and will allow users to begin receiving repayments.
In a Jan. 3 X post, FTX debtors said users requesting funds should be wary of phishing emails designed to look like they were sent from the exchange.
Customers need to have filed a claim through the official website to be eligible to receive reimbursement, which FTX said should happen within 60 days for the first group.
According to the FTX plan, an initial group of “convenience classes” will be the first to receive repayments, including users claiming $50,000 or less. The plan, approved in October, stated that 98% of FTX users could expect to be paid 119% of the declared value of their funds.
Repaying users could be one of the final throes of the FTX saga, beginning with the exchange filing for bankruptcy in November 2022 and moving to some executives sent to prison for their role in defrauding users.
At the time of publication, Cointelegraph was unable to locate any users who reported receiving funds from the reorganization plan.
Not all FTX users on board
Many creditors have criticized the debtors’ plan for claimants to receive reimbursement based on the prices of cryptocurrencies the exchange held at the time of bankruptcy in 2022. The price of Bitcoin (BTC) increased by more than 400% in two years and was $98,697 at the time of publication.
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Of the FTX executives indicted amid the exchange’s collapse, only two escaped prison time: former engineering director Nishad Singh and co-founder Gary Wang.
Former FTX CEO Sam “SBF” Bankman-Fried, former Alameda Research CEO Caroline Ellison, and former FTX Digital Markets co-CEO Ryan Salame were all sentenced to years in prison, though SBF has filed an appeal for his conviction.
Crypto firms BitGo and Kraken announced in December that they would assist in distributing recoveries to FTX users. Assuming all users file complete claims, the exchange could be expected to pay out roughly $16 billion.
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