"FTX 'Under $50,000' Creditors Receive Payment Notification Emails... Payment Process Begins on the 18th"

The bankrupt cryptocurrency exchange FTX is set to commence the payment process for creditors with claims under $50,000 starting on the 18th, and it has been confirmed that some creditors have received payment notification emails.

On the 8th, Sunil Kavuri, the representative of the largest group of FTX creditors, announced on his X (formerly Twitter) that "FTX is sending payment-related notices via email to creditors holding less than $50,000." According to the email, FTX Global has deposited funds to be distributed to initial creditors with BitGo and Kraken, and the payment process is set to begin on the 18th.

However, it appears that a significant number of creditors have not yet completed their claims due to the complex repayment procedures. Kavuri stated, "Several creditors' claims are still marked as 'Disputed' on the FTX claims portal," and added, "The claims of creditors who have not completed KYC (Know Your Customer) for amounts under $50,000 amount to $345 million."

Previously, last month, Kavuri had stated that "FTX creditors with claims under $50,000 must complete registration by January 20th."

Creditors who did not complete registration by the 20th of last month are also expected to receive distributions within a certain period. In the notice, FTX stated, "Even if the deadline is missed, distributions can still be received for several months thereafter," and explained, "Registration must be completed within six months from the initial distribution record date (the 3rd of last month). Failure to do so may result in the complete loss of the right to receive distributions."

Meanwhile, FTX creditors can receive compensation after completing KYC, tax reporting, and selecting a custodian on the claims portal (claims.ftx.com).