FTX Trading Ltd. and its affiliated debtors have announced that their Court-approved Chapter 11 Plan of Reorganization will take effect on January 3, 2025. This date also marks the initial distribution record date for holders of allowed claims in the Plan’s Convenience Classes.
Known as the Initial Distribution, payments will commence within 60 days of the effective date. Distribution eligibility will require compliance with know-your-customer (KYC) and other requirements.
Funds Distribution to Initially Begin From 3rd January
The Initial Distribution will focus on the Plan’s Convenience Classes, with separate records and payment dates for other claim categories to be announced later. The process reflects two years of extensive recovery efforts since FTX’s high-profile collapse in 2022.
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John J. Ray III, Chief Executive Officer of the FTX Debtors, highlighted the significance of this milestone: “For the past two years, our team of professionals have meticulously and efficiently worked to recover billions of dollars to reach this point.”
“The Plan becoming effective in January 2025 and the start of distributions are reflections of the outstanding success of the recovery efforts. We are well positioned to begin executing the distribution of recoveries back to all customers and creditors and encourage customers to complete the necessary steps to begin receiving distributions in a timely manner.”
FTX Partners Up for Smooth Distribution
To streamline the distribution process, FTX has partnered with two companies, BitGo and Kraken, to assist in handling payouts to customers and creditors across supported jurisdictions.
BitGo, a globally regulated custodian since 2013, and Kraken, a leading U.S.-based cryptocurrency exchange, will manage the process for retail and institutional customers. Detailed instructions for onboarding with these providers will be shared on the FTX Debtors’ Customer Portal.
FTX has also issued a strong warning about potential scams targeting creditors. The company emphasized that it will never request wallet connections or personal information via email. Customers are urged to remain vigilant against phishing attempts and to verify any communications against the official FTX Customer Portal or the company’s verified account on X.com.
FTX is expected to announce a separate distribution process for customers who choose to have their claims administered through FTX DM. Updates on these processes will be provided through FTX’s official channels.
The company’s progress marks a turning point in its efforts to recover and redistribute billions of dollars owed to customers and creditors. FTX’s collapse in 2022 was shocking for the industry. With the distribution plan now in motion, FTX aims to restore some of the trust lost during its downfall.
All U.S. bankruptcy court filings related to the Plan, including distribution details, can be accessed on the official FTX case website. Customers are advised to stay informed and take necessary actions promptly to ensure their participation in the recovery process.
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