In stark contrast to Sam Bankman-Friedrecent events suggest that he confirmed his assurances last January FTX customers face a long wait for potential repayment.

What happened: TV show host Neuner’s wounds has shed light on FTX’s protracted distribution schedule, which is currently expected to last until 2024 and possibly 2025.

According to Neuner, a key court hearing is scheduled for Oct. 7 to confirm FTX’s Chapter 11 reorganization plan.

If approved, this will allow repayments to begin.

However, payments would not begin until 60 days after the plan went into effect, and initially only for plaintiffs who owed less than $50,000.

Larger applicants may not receive payments until the first quarter of 2025 at the earliest.

Read also: Mark Cuban, Treasury Secretary? No, ‘Head of the SEC’ Is the Position He Would Take Because Gary Gensler Has Been ‘Terrible’ to Cryptocurrencies and Companies

Why it matters: This timeline is in stark contrast to statements made by Bankman-Fried in January 2023, just days after his release on $250 million bail.

At the time, FTX’s former CEO took to social media to deny allegations of misappropriation of user funds and criticized Binance CEO Changpeng Zhao for allegedly campaigning against his replacement.

“I didn’t steal funds and I certainly didn’t hide billions,” Bankman-Fried said, maintaining that most of his wealth is still used to support FTX clients.

He also stated that both FTX International and Alameda will be “legally and independently profitable companies in 2021, with each making billions.”

Bankman-Fried further alleged that Alameda fell victim to a “targeted attack” after implementing significant security measures, which ultimately led to FTX’s collapse.

He expressed frustration that FTX US users were not “fulfilled,” claiming the entity had $350 million in net cash at the time of his departure.

Now, as the repayment process stretches into the future, these past claims are a reminder of the complex and often controversial nature of cryptocurrency bankruptcies.

The extended customer repayment schedule highlights the challenges in resolving such high-profile meltdowns in the crypto industry.

What’s next?: This ongoing story will likely be the centerpiece of Benzinga’s Future of Digital Assets event on November 19, where industry experts will be able to analyze the FTX case, its implications for the regulatory framework and the future of customer protection in the crypto space.

Read further:

Some elements of this story were previously reported by Benzinga and have been updated.

Artificial intelligence image created with Midjourney.