FTX announced on January 4 that, according to the provisions for Convenience Classes in the plan, there are strict deadlines and pre-distribution requirements for the initial distribution. Only creditors who complete these requirements before the designated deadline will be eligible for distribution. Failure to complete on time may result in payment delays or loss of distribution rights.
FTX Initial Distribution Deadline: January 3, 2025 (must have passed KYC)
To qualify for the initial distribution, creditors must meet all pre-distribution requirements by January 3, 2025. This date is designated as the Initial Distribution Record Date. Specifically, creditors must complete all conditions listed in the confirmed plan Section 2.1.8.
One key requirement is that creditors must complete 'Know Your Customer' (KYC) verification before this date. Failure to complete this step will prevent creditors from participating in the initial distribution.
Additional Requirements and Extended Deadline: January 20, 2025 (Complete tax forms and select distribution vendor)
Creditors confirmed to be in the convenience class as of January 3, 2025, may complete the remaining pre-distribution steps within an additional deadline. The extended deadline is January 20, 2025, by which creditors must complete the following requirements:
Submit complete tax forms (Step 7).
Select and successfully complete matching with a distribution service provider (Step 8).
Pass the sanction review to ensure compliance with legal and regulatory requirements.
Creditors who fail to complete these steps by January 20, 2025, will have their distribution postponed to subsequent rounds.
Consequences for FTX users who do not comply with deadlines: delayed compensation or loss of eligibility
According to the plan terms, creditors who fail to comply with these deadlines will face the following consequences:
Payment delays:
Late applications will not be processed in the initial distribution but will be postponed to subsequent distribution rounds, with possible waiting times extending for months.
Potential loss of distribution rights:
According to Section 7.8 of the plan, if creditors fail to complete pre-distribution requirements within six months after the initial record date (before July 3, 2025), they may lose their distribution rights.
Section 7.14 emphasizes that creditors must respond to requests in a timely manner and complete all pending tasks. Failure to complete within the specified time will also result in the loss of distribution rights.
What happens if requirements are delayed?
For creditors who fail to complete the requirements by the initial distribution deadline but complete the relevant steps afterward, their distribution will be processed in subsequent months. However, it is strongly recommended that creditors adhere to the initial deadline to avoid unnecessary delays or other complications.
Final Reminder to Creditors
Creditors in the convenience class plan need to be aware of the time constraints. To receive compensation on time, please ensure all pre-distribution requirements are completed before the following key dates:
January 3, 2025: Initial Distribution Record Date
January 20, 2025: Final deadline for completing tax form submissions, vendor matching, and sanction reviews
Creditors who do not complete their requirements on time may face payment delays, or in some cases, completely lose their distribution rights. Do not risk losing your rights, take action now to ensure all necessary steps are completed!
Complete the FTX distribution vendor selection by 1/20! Initial Distribution Guidelines: Important Dates and Requirements for FTX Creditors. First appeared in Chain News ABMedia.