FTX Trading Ltd. (i.e. FTX.com) and its related debtors officially announced that its court-approved Chapter 11 restructuring plan will take effect on January 3, 2025. This date will serve as the effective date of the plan and also the registration date for the initial distribution of specific claims.

FTX initial distribution focuses on convenience classes

The first round of fund distribution, known as the Initial Distribution, is expected to commence within 60 days after January 3, 2025, and is limited to claims in the Convenience Classes of the plan. Creditors must complete specific requirements, including customer identity verification (KYC) and submitting tax forms, to qualify. Details of distributions for other classes will be announced later.

John J. Ray III, CEO of FTX's debtors, praised the team's efforts over the past two years, stating: "The initiation of the plan effective January 2025 and the distribution reflects the outstanding results of the recovery work. We are ready to begin fund distribution to all customers and creditors."

List of distribution partners announced: BitGo and Kraken

To ensure a smooth fund distribution for retail and institutional creditors, FTX has partnered with the following two major service providers:

  • BitGo: A globally regulated custodian focused on secure trading and settlement services for digital assets.

  • Kraken: A mainstream cryptocurrency exchange offering spot trading, derivatives, and diverse crypto services covering 190 countries.

These partners will assist with the distribution process in supported jurisdictions. If additional partners are added, FTX will further announce the relevant news.

FTX distribution eligibility requirements

Steps that customers must complete before the registration date

To participate in the initial distribution, creditors must complete the following steps on the FTX claims website before January 3, 2025:

1. Log in to the customer portal at [claims.ftx.com] (https://claims.ftx.com). 2. Complete KYC verification to confirm your identity. 3. Submit tax forms to comply with regulatory requirements. 4. Follow the website instructions to connect with BitGo or Kraken.

As for the transferred claims, only the holders registered in the official claims register as of January 3, 2025, are eligible for distribution. The transfer of claims must also meet a 21-day notice period without objection.

Beware of phishing attacks

FTX reminds customers to be wary of potential phishing scams, including emails or websites masquerading as FTX claims websites. FTX emphasizes that it will never ask users to connect wallets or provide sensitive information through unverified channels.

This article states that FTX has set January 3, 2025, as the date for the bankruptcy plan and initial distribution, with BitGo and Kraken as the main partners, first appearing in Chain News ABMedia.