Collapsed crypto exchange FTX and its affiliated debtors have announced significant progress in their Chapter 11 Plan of Reorganization.
The company is finalizing the necessary steps to implement its Court-approved Plan, setting the stage for creditor and customer distributions to commence in early 2025.
FTX Sets Early 2025 Timeline for Customer Distributions
John J. Ray III, the Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors, expressed optimism about the process. “We are pleased to announce that we will begin distributing proceeds in early 2025. Our team has worked tirelessly, recovering billions for creditors and customers. We remain focused on maximizing recoveries and ensuring a swift return of proceeds,” he stated.
Distribution Timeline and Requirements
FTX has outlined a clear roadmap for the distribution process. In December 2024 the debtors will finalize arrangements with specialized distribution agents, who will facilitate the global distribution process. Customers will be required to establish an approved account with these agents through the FTX customer portal.
By the end of December 2024, the exact effective date for the Plan will be announced, contingent upon a Court Order approving the Disputed Claims Reserve Amount.
By Early January 2025, the Plan is expected to become effective. The first round of distributions, designated for holders of allowed claims in the Convenience Classes, will occur within 60 days of this date.
To receive distributions, customers must complete KYC verification, establish accounts with distribution agents, and submit necessary tax forms before the distribution record date.
Claims traders should note that claims transferred within 45 days of the distribution record date may not be updated in the claims register promptly, potentially affecting the timing of their distributions.
Customer and Shareholder Recovery
FTX had previously won court approval to repay customers fully, providing an unexpected recovery for those whose assets were locked during the platform’s collapse nearly two years ago. Federal authorities have seized approximately $1 billion, which may also benefit shareholders, underscoring the scale of the recovery effort.
FTX Token (FTT) Gains Momentum
The FTX Token (FTT) is showing remarkable bullish activity. The token surged by nearly 30% in the last 24 hours, trading at $2.58. Its market capitalization now stands at $848.59 million, with a staggering 283% increase in 24-hour trading volume.
Over the past week, FTT has gained over 40%, reflecting renewed investor confidence in the platform’s revival efforts.
The completion of FTX’s Chapter 11 Plan represents a significant milestone in the company’s efforts to restore trust and compensate affected customers and creditors.
The systematic approach to distributions and the unexpected scale of recoveries signal a robust restructuring process, potentially setting a benchmark for future cases in the crypto industry.