The cryptocurrency exchange FTX declared bankruptcy in November 2022, and now, after more than two years, this bankruptcy case has finally taken a significant step towards resolution.
According to the latest announcement, FTX's bankruptcy reorganization plan will officially take effect on January 3, 2025. Customers and creditors will be able to receive the first batch of compensation through Kraken and BitGo within 60 days from the effective date.
FTX stated that the first wave of compensation primarily targets the "Convenience Classes" in the reorganization plan, with distribution dates for other classes of claims to be announced later.
FTX's current CEO John J. Ray III stated in a statement: "Over the past two years, our team has worked tirelessly to successfully recover billions of dollars in assets, and we have finally achieved this goal."
The bankruptcy plan will take effect in January 2025 and will initiate compensation, confirming our significant success in asset recovery efforts.
In terms of executing compensation, FTX has currently designated Kraken and BitGo to collaborate on distributing funds to creditors, and a third cooperating platform is expected to be announced soon.
In addition, FTX customers can also choose to receive funds in stablecoins (such as USDT, USDC).
FTX's bankruptcy plan was approved by U.S. Delaware Bankruptcy Court Judge John Dorsey in October this year. According to FTX at the time, up to 98% of customers will be able to receive 118% of the value of assets held by FTX at the time of filing for bankruptcy in 2022 in cash compensation.
Although the above plan has received support from about 94% of creditors (representing $6.83 billion in claims), FTX's largest creditor representative Sunil Kavuri believes that FTX should compensate customers based on the actual amount of cryptocurrency lost at that time, rather than calculating compensation based on the "price at the time of bankruptcy."