FTX Trading Ltd. and its debtors announced progress toward executing a reorganization plan approved by the U.S. Bankruptcy Court under Chapter 11.
The plan will allow the company to distribute up to $16.5 billion in recovered funds to creditors and customers, with distributions expected to begin in early 2025.
According to the source, the distribution schedule is as follows:
Early December 2024: Completion of arrangements with specialized distribution agents to facilitate the payment process, where customers will be required to create authorized accounts via the customer portal.
End of December 2024: Announcement of the effective date of the reorganization plan, subject to court approval of the reserve amount for disputed claims.
60 days from Effective Date: Begin initial distributions to eligible customers and creditors.
Reorganization plan:
The plan, approved in October 2024, has received strong support from creditors, with average recoveries expected to be 119% of the value of claims, and up to 140% for some cash claims.
The recovered assets are estimated to be between $14.7 billion and $16.5 billion, and include amounts recovered by the company from international regulators and the US Department of Justice.
These moves come in the wake of the collapse of FTX in late 2022, which led to criminal convictions of high-profile officials, including:
Sam Bankman-Fried: Sentenced to 25 years in prison on fraud and conspiracy charges.
Ryan Salam: Sentenced to 7.5 years in prison.
Caroline Ellison: Sentenced to two years in prison.
Nishad Singh and Gary Wang: Avoided prison altogether.
FTX's next steps aim to achieve fair and expeditious distribution, while continuing efforts to maximize recoveries for the benefit of customers and creditors.
