After a lengthy two-year bankruptcy restructuring process, Judge John Dorsey officially approved the bankruptcy repayment plan submitted by the FTX restructuring team in early October this year. Once all assets are sold, the company estimates that up to $14.5 billion to $16.3 billion in cash will be available for distribution.
According to the latest official press release from the bankruptcy team yesterday, creditors are expected to officially receive repayments in Q1 of next year. The related distribution timeline is as follows:
In early December, the debtor is expected to reach a final arrangement with professional distribution agents, who will assist FTX in distributing the recovered funds to global customers in supported jurisdictions. At that time, the debtor will provide instructions to customers on how to establish approved accounts with the distribution agents on the existing customer portal.
By the end of December, the debtor expects to announce the exact effective date after the court orders the approval of the disputed claims reserve, which is a prerequisite for distribution based on the confirmation order.
The debtor currently expects the plan to take effect in early January 2025. According to the confirmation order, the first distribution will be made within 60 days thereafter to holders allowed to claim in the plan facilitation category (first distribution). The record date for the first distribution will be the same as the effective date.
Please have creditors complete the relevant KYC verification
Additionally, please note that the officials state that in order to be eligible to receive repayments on the initial distribution date, customers must establish an approved account with the distribution agent and complete KYC verification before the distribution record date, as well as submit the required tax forms.
How to confirm if KYC for claims is completed?
Regarding the KYC verification part, if you have not completed it, please log in to the FTX customer claims portal Claims.ftx.com. If it does not show as On Hold or Verified as shown in the image below, please follow the previously written (FTX claim application tutorial) by Dongqu, which includes 10 steps to guide you through filling out, KYC upload, and finally receiving the official Kroll certificate.
How to submit tax forms
Log in normally to the customer claims website, select the corresponding platform to start, and the information is divided into 8 steps:
Authenticate account;
Verify account holder identity;
Conduct KYC;
Check account balances (View Account Balances);
Check claim proof status;
Vote;
Select tax requirements;
Select payment option.
If you are a creditor of FTX, you should have completed the aforementioned 8 options in the previous claim steps, which should be highlighted and checked. The additional tax requirement this time will pop up when you log in, please refer to the following steps to fill it out:
1. Click on 'Generate Tax Form';
2. Taiwanese users need to select 'No' to indicate that they are non-U.S. taxpayers;
3. Individual users should select 'Individual' in the beneficiary option;
4. Finally, fill out the W-8 BEN form, including name, date of birth, nationality,
If you are a user from Taiwan, please enter your Taiwan ID number in the Foreign Tax Identification Number (FTIN) field. If you are not an individual entity, please enter your Unified Business Number here.
What is the W-8 BEN form?
For many non-U.S. taxpayers, they may not be familiar with what the W-8 BEN form is. In fact, the W-8 BEN in English translates to the U.S. withholding tax beneficial owner's foreign identification certificate, a tax document submitted by non-U.S. citizens or residents (foreigners) to U.S. withholding agents. This form is mainly used for the following purposes:
Apply for a reduced tax rate or exemption from withholding tax: According to the tax treaties between the United States and certain countries, foreigners may qualify for a lower withholding tax rate (e.g., on dividends, interest, royalties, etc.). After submitting the W-8 BEN form, U.S. payers may apply the preferential tax rates stipulated in the treaty instead of the standard 30% withholding tax rate.
Prove identity and foreign tax residency: Through this form, taxpayers can demonstrate that they are not U.S. tax residents and therefore not subject to the U.S. global taxation system.
Prevent double taxation: Submitting this form helps foreign taxpayers avoid double taxation situations due to taxation in both the U.S. and their country of residence.
Additionally, the W-8 BEN form is applicable to individuals, while the W-8 BEN-E is used for foreign entities such as companies or other organizations.
