On December 16, FTX and its affiliated debtors announced that their reorganization plan will come into effect on January 3, 2025, with distributions commencing within 60 days. FTX has partnered with BitGo and Kraken to manage the distribution process for retail and institutional creditors, ensuring the process is executed efficiently and securely across supported jurisdictions and through stablecoins.
The initial distribution will apply only to creditors in the plan’s “Convenience Classes,” and FTX will announce separate payment dates for other classes. The company will also announce additional distribution service providers on its customer portal and official communication channels. FTX CEO John J.
Ray III stated that they 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.” Ray also emphasized the importance of meeting eligibility requirements to receive payments promptly, urging creditors to complete necessary steps via the FTX Debtors’ Customer Portal.
Creditors eligible for the Initial Distribution must complete several key steps before the effective date, such as completing know-your-customer validations, submitting tax forms, and onboarding with distribution partners. Distributions for transferred claims will only be made to holders whose claims are registered by January 3, 2025, and meet a 21-day notice period without objection.
FTX warned users to avoid phishing scams and reminded creditors that official communications will only come through verified channels. The company stressed that it will never request users to connect wallets or provide sensitive financial details outside the official customer portal. On October 7, US Bankruptcy Judge John Dorsey approved the $16.5 billion recovery plan during a hearing in Wilmington, Delaware, with a total value that could potentially fall to $14.7 billion after cash conversion.
FTX’s collapse in November 2022 after mismanagement of customer funds by its founder, Sam Bankman-Fried, and other executives left around 9 million customers and investors facing significant financial losses.
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