Cryptocurrency exchange FTX declared bankruptcy in November 2022, and since then has undergone a long process of lawsuits and bankruptcy liquidation, and now there is new progress. FTX announced on Thursday that the bankruptcy reorganization is expected to be completed early next year, with compensation to users and creditors expected to begin in March 2025.
FTX's current CEO John J. Ray III stated: 'The current timeline reflects the efforts of our professional team. They have recovered billions of dollars in assets for creditors and customers.'
The FTX Debtors today provided an update on the upcoming timeline for creditor and customer distributions. Read more here: https://t.co/Goi98Fh3Ns
— FTX (@FTX_Official) November 21, 2024
According to the official statement, FTX plans to work with a specialized 'fund distribution agent' to complete the fund distribution arrangements by the end of December this year, at which time the 'exact effective date' will also be announced.
FTX reminds that customers must first create an approved distribution agent account, complete identity verification (KYC), and submit the necessary tax documents in order to receive funds within the first distribution date.
On October 7 of this year, the U.S. court approved FTX's bankruptcy plan, which also means that FTX will 'fully repay' customer funds, but the so-called 'full repayment' is calculated based on the market price on the day FTX filed for bankruptcy. The problem is that Bitcoin has skyrocketed, rising from $16,872 at that time to now $99,000, which has sparked considerable controversy and dissatisfaction.
"The countdown for bankruptcy reorganization has begun! FTX expects to start compensating affected parties in 'March next year'" This article was first published on (Blockcast).
