FTX's reorganization plan has officially taken effect, marking a significant milestone in the ongoing bankruptcy proceedings.
The plan aims to repay users who have been waiting for their funds since the exchange filed for bankruptcy in November 2022. Users who have filed claims through the official FTX website can expect to start receiving reimbursements within 60 days, particularly those claiming $50,000 or less.
FTX debtors have warned users to remain vigilant against phishing attempts.
The reorganization plan, approved in October, anticipates that approximately 98% of FTX users will receive repayments amounting to 119% of the declared value of their funds. However, no users have confirmed the receipt of funds from this plan yet.
Critics have raised concerns about the methodology used to determine reimbursement amounts, particularly the decision to base payouts on cryptocurrency prices at the time of FTX's bankruptcy.
The involvement of law enforcement and regulatory bodies has added scrutiny to the proceedings. BitGo and Kraken are assisting with the distribution of funds to affected users.
The FTX saga has shaken investor confidence and prompted calls for more stringent regulations in the cryptocurrency industry.