FTX Announces Payouts for <$50k Claims by 18 February 2025
- FTX starts notifying creditors with claims under $50k for payouts, set for February 2025.
- Bitgo and Kraken will process claims on behalf of FTX, with initial funds already sent.
- $345M of claims are non-KYC verified, potentially delaying processing for some creditors.
FTX has started notifying creditors with claims less than or equal to $50,000 to prepare for payouts. The company will distribute the funds in collaboration with Bitgo and Kraken. This marks FTX’s continued efforts to pay Claims Holders following the company’s bankruptcy issues, where payments are expected to be made by February 18, 2025.
Creditors are deprived of direct payments from FTX and should depend on the distribution service providers, who will process the claims on behalf of FTX. Bitgo and Kraken have already received the first distribution funds, and they are ready to start the procedure. FTX is committed to ensuring that all eligible creditors receive their funds as quickly as possible.
Initial Stage of Change
It comes after a period of suspense when creditors were unsure about their claims following the collapse of FTX. However, this is only the initial stage of change, and all these will take time to accomplish.
Some creditors have even posted disputes to their claims on the FTX claims platform, as allowed by the platform. Such concerns indicate that there are concerns about the reliability of claims data and the authenticity check. Nevertheless, FTX is continuing the distribution process, and the company is striving to handle the remaining claims in the most effective manner.
Non-KYC Claims Complicate Process
FTX’s claims portal also shows that $345 million of the claims under $50,000 are non-KYC verified, which can complicate the processing of some of the claims even further. This is part of the total $1.2 billion of claims received by the creditors in this category. Verification requests that have not gone through KYC will, therefore, be subjected to this implication and reduce the speed at which these sorts of creditors are approved.
Related: FTX Scandal: Can Sam Bankman-Fried Secure a Trump Pardon?
Nevertheless, FTX remains determined to proceed with the distribution process. Creditors can testify that their payments for the bankruptcy case will be made on or around February 18, 2025. There are still some issues and debates regarding this scheme, but according to FTX, it should help many of its creditors.
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