FTX, the embattled cryptocurrency exchange, is set to distribute $16 billion in cash to approved debt holders as part of its Chapter 11 restructuring plan. The distribution, which will officially take effect on January 3, 2025, marks a significant milestone in the company’s efforts to repay its creditors.
Background on the Restructuring Plan
On December 17, FTX and its associated debtors announced that the court-approved restructuring plan would take effect on January 3, 2025. The plan includes a first round of distribution, which will be available to approved debt holders in the Convenience Classes within 60 days of the effective date.
Eligibility Requirements for the First Round of Allocation
To qualify for the first round of allocation, users must complete the following steps before January 3, 2025:
* Log in to the FTX Debtor Client Portal
* Complete KYC identity verification
* Submit necessary tax forms
* Complete registration with BitGo or Kraken, FTX’s partners in providing asset allocation services to retail and institutional clients.
Partnership with BitGo and Kraken
FTX has reached an agreement with cryptocurrency custodian BitGo and trading platform Kraken to provide asset allocation services to its clients. This partnership is expected to facilitate the distribution process and provide a secure and reliable platform for users to access their allocated assets.