FTX exchange, which declared Bankruptcy in 2022, recently announced that it will start the initial repayment on February 18th. This repayment will prioritize creditors with claims less than USD 50,000, and will provide an additional 9.0% annual interest since November 11, 2022 until the initial distribution date.
The first stage of compensation is expected to be 65 - 70 Billion USD
It is worth mentioning that this repayment is the first stage, and Cointelegraph cited FTX-related documents on February 11 on social media platform X, indicating that the scale of this stage of repayment will reach 65 - 70 Billion USD.
The second stage of repayment is expected to be carried out in Q2
Additionally, FTX creditor representative Sunil posted on the X platform yesterday (14th) stating that FTX has sent email notifications to creditors who did not meet the requirements for the first round of repayment, including:
- Customers under review;
- Customers with claims over USD 50,000;
- Customers who have not yet met the repayment requirements (including KYC, tax information, etc.);
- Customers who have chosen to wait for other distribution methods.
Sunil added that any eligible claimants who have not yet completed the claim requirements will receive compensation, and the second stage of compensation will be carried out in the second quarter of this year.
FTX creditors must complete KYC
It is worth mentioning that at the beginning of this month, FTX had sent an email to creditors stating that in order to receive compensation, creditors must submit KYC data by March 1st this year, otherwise they will not be able to receive the claim, with key information including:
1. KYC Deadline:
- Before 4:00 PM EST on March 1, 2025: The KYC submission process must be initiated, otherwise the claim will be rejected and deleted.
- Before 4:00 PM EST on June 1, 2025, all KYC data must be submitted, otherwise the claim will likewise be rejected and deleted.
2. Rights of Claim Transferees: If a claim is transferred before July 13, 2023, the new claim holder can submit the KYC data on behalf of the original holder, but must pass the sanctions screening.
3. Failure to Pass KYC: Even if KYC data is submitted before the deadline, if it fails to pass KYC, the claim may still be rejected.
How to proceed with KYC?
If you are also an FTX creditor, please be reminded to complete the KYC process as soon as possible to avoid losing your rights. The complete steps are as follows:
- Log in to the FTX Claims Portal website ( https://claims.ftx.com )
- Complete the required KYC verification (please see Block Tempo's FTX Claims Portal Tutorial)
- Submit the required tax forms, including the W-8 BEN form (please see Block Tempo's Tax Form Submission Tutorial)
- In STEP8, select the compensation service provider BitGo or Kraken, read the registration instructions for the selected service provider, and complete the BitGo or Kraken registration account.
BitGo is a globally regulated cryptocurrency custodian, while Kraken is a well-known US cryptocurrency exchange that provides spot and derivative services in up to 190 countries/regions.
