The bankrupt exchange FTX and its affiliated debtors today issued a press release announcing that its court-approved Chapter 11 bankruptcy reorganization plan will take effect on January 3, 2025. This date has also been set as the record date for the first distribution to creditors in the 'Convenience Classes' of the reorganization plan.

The initial distribution is expected to occur within 60 days from the effective date, with participants required to meet claim requirements such as identity verification (KYC) and submission of tax forms. The initial distribution is limited to the convenience classes in the reorganization plan, specifically creditors with claim amounts less than $50,000; records and payment dates for other classes of creditors will be announced in due course.

FTX Debtor CEO John J. Ray III stated:

‘Over the past two years, our professional team has worked diligently and efficiently to recover billions of dollars, which has led to today's outcomes. The reorganization plan will take effect in January 2025 and initiate distributions, reflecting the remarkable success of the recovery efforts. We are currently in a favorable position to begin executing distributions of the recovered funds to all customers and creditors. We encourage customers to complete the necessary steps to receive their distributions in a timely manner.’

In addition, FTX announced that it has reached agreements with BitGo and Kraken to utilize the services of these two companies to distribute funds to retail and institutional customers as well as other creditors.

FTX emphasizes that to qualify for the initial distribution, customers and other creditors must complete the following steps prior to the record date for the distribution (January 3, 2025):

  • Log in to the FTX Debtor Customer Portal (https://claims.ftx.com) (for customers).

  • Complete the required identity verification (KYC).

  • Submit the required tax forms.

  • Register with BitGo or Kraken. FTX Debtors will provide corresponding registration instructions in the existing FTX Debtor Customer Portal.

Source