FTX, the collapsed cryptocurrency exchange, has officially begun its repayment process following the activation of its reorganization plan on January 3. The process marks a significant step in the exchange's bankruptcy proceedings, which started in November 2022. Users who filed claims through FTX's official website are now eligible for reimbursement, with the first group expected to receive funds within 60 days.

The repayment plan prioritizes "convenience classes," including users with claims of $50,000 or less. These individuals could recover 119% of their declared funds, according to the plan approved in October. This move is expected to benefit 98% of FTX’s users. However, critics have voiced concerns about reimbursements being tied to cryptocurrency prices from 2022, a decision that many believe undermines current market valuations, including Bitcoin, which has surged by over 400% since then.

While the plan aims to bring closure to FTX's turbulent saga, some creditors remain dissatisfied. The exchange owes roughly $16 billion, assuming all claims are filed correctly. Crypto firms BitGo and Kraken have been tapped to assist in distributing recoveries.

The scandal has already sent shockwaves through the crypto world, with key figures like former FTX CEO Sam Bankman-Fried, Alameda Research CEO Caroline Ellison, and FTX Digital Markets co-CEO Ryan Salame receiving prison sentences. Meanwhile, co-founder Gary Wang and former engineering director Nishad Singh avoided imprisonment.

Users are also warned to be cautious of phishing scams impersonating FTX during this repayment phase. At press time, no recipients of the plan's initial payouts have come forward. The repayment process represents one of the final chapters in a saga that has shaken the crypto industry to its core.