Former users of the now-bankrupt FTX exchange are starting to receive payouts from the $5 billion distribution plan. This marks the second phase of FTX's bankruptcy payout strategy. BitGo and Kraken are assisting in the distribution. FTX aims to reimburse creditors with 74% of their previous dollar account value, with hopes to distribute between $14.7 billion and $16.5 billion eventually. While some welcome the payouts, others wish for crypto asset distributions due to market appreciation. The process also serves as a liquidity boost for potential alt seasons. Users should remain vigilant against phishing and scams. FTX began the payout on May 30, following a bankruptcy plan announced in November 2022.
❓ What is the FTX payout plan?
FTX's payout plan involves distributing up to $16.5 billion to creditors, with former users receiving 74% of their account's dollar value.
❓ Why are some users unhappy with the payout?
Some users preferred 'in kind' crypto asset distributions, which have appreciated since FTX's collapse, over cash payouts.
❓ Who are the distribution partners for FTX payouts?
BitGo and Kraken are the appointed distribution partners for FTX's payout process.