Two years after the cryptocurrency exchange FTX filed for bankruptcy, a team led by John J. Ray III announced that it is about to complete the final Chapter 11 reorganization plan, with distributions expected to begin in early 2025.

FTX Reorganization Plan Process

According to the official press release, the subsequent process is as follows:

  • In early December, the debtor expects to reach a final arrangement with professional distribution agents, who will assist FTX in distributing the collections to global customers in supported jurisdictions. At that time, the debtor will provide instructions to customers on how to establish approved accounts with the distribution agents on the existing customer portal.

  • By the end of December, the debtor expects to announce the exact effective date after the court order approves the disputed claim reserve, which is a prerequisite for distribution according to the confirmation order.

  • The debtor currently expects the plan to take effect in early January 2025. According to the confirmation order, the first distribution will be made to holders of allowed claims in the plan convenience class within 60 days thereafter. The record date for the first distribution will be the same as the effective date.

Customers must complete KYC verification

To be eligible to receive distributions on the initial distribution date, customers must establish an approved account with the distribution agent before the record date, complete KYC verification, and submit the required tax forms. Customers applying for claims with FTX Trading Ltd. (U.S.) should keep an eye out for email notifications, and ChainNews will also keep readers updated with the latest news.

Additionally, customers applying for claims with FTX Digital Markets, Ltd. (Bahamas) should also submit KYC verification before the end of the month.

Further Reading
FTX Digital users take note! KYC step-by-step guide can be found here, please complete within 30 days

Claim traders should be aware that, according to Section 7.4.1 of the plan, claims traded within 45 days prior to the record date may not be reflected in the claims register at the close of business on the record date, and distributions for these claims may be allocated to the transferor.

According to previously released information, FTX expects the total value of property collected, converted to cash, and available for distribution to fall between $14.7 billion and $16.5 billion. This amount includes assets controlled by the Chapter 11 debtor as well as those controlled by the joint official liquidators of FTX Digital Markets, Ltd. (Bahamas), FTX Australia administrators, the U.S. Department of Justice, and dozens of private participating entities. 98% of FTX creditors will receive approximately 119% return of their allowed claim amounts within 60 days after the plan takes effect.

[Disclaimer] The market is risky, and investments should be made cautiously. This article does not constitute investment advice, and users should consider whether any opinions, views, or conclusions in this article are suitable for their specific circumstances. Invest at your own risk.

  • This article is reprinted with permission from: (ChainNews)

‘FTX is about to repay! Expected 'this time' to start distributions, what information do you need to pay attention to?’ This article was first published in 'Crypto City'