The FTX cryptocurrency exchange has revealed a timeline for a total of $16 billion in payments to creditors. Experts anticipate that the first payments will occur in early February, in accordance with the plan and approval order, which prioritizes payments to smaller creditors.

Start Date and Payment Details

Sunil Kavuri, a creditor of FTX, shared details regarding the payments in a statement on January 12. The initial round of payments is planned for creditors with claims under $50,000, amounting to approximately $1.2 billion, with the record date set for January 3.

Before the initial distribution, FTX has requested creditors to complete their requirements by January 20. Creditors must fill out W-8Ben forms and submit tax withholding forms within 30 days after KYC verification. Those who do not submit the tax form within the 60-day window will not receive their payments.

Sunil Kavuri stated, “We expect the first round of payments to start in February, likely continuing until March 4.”

Security and Fraud Warnings

Creditors have reported numerous phishing emails and requests claiming that payments have started. FTX emphasized the importance of being cautious with such communications from unauthorized sources.