#FTX approaches the end of its bankruptcy process as it unveils a new date for $16 billion reimbursement to creditors.
The FTX bankruptcy estate announced the development in a recent press release, noting that the court-approved Chapter 11 reorganization plan will take effect on January 3, 2025. Per the announcement, January 3 will also serve as the initial distribution record date for holders within the plan’s Convenience Classes.
Notably, FTX will commence initial repayment within 60 days of the effective date. In preparation for the distribution, FTX agreed with two prominent crypto exchanges, Kraken and BitGo. These trading platforms will oversee the distribution of the funds to eligible customers.
Preparation for Repayment
The announcement provided a guide on how customers and creditors will be eligible for the initial distribution. This includes completing a mandatory know-your-customer (KYC) verification process on the FTX Claims platform and submitting the necessary tax forms.
Afterward, these users must onboard to BitGo or Kraken before the January 3 effective date. Upon completing these requirements, FTX will commence the initial distribution within 60 days of the effective date of the court-approved reorganization plan.
The initial repayment will focus on creditors with claims under $50,000. Notably, these customers account for around 90% of all eligible creditors in FTX bankruptcy proceedings.
The system groups them under the Convenience Classes. After the initial distribution, FTX will announce separate records and payment dates for other classes in the future.
#CryptoNews🚀🔥V
