Coinspeaker FTX Distribution Plan Sets January 3 Start, 60-Day Payout Window
The defunct cryptocurrency exchange FTX, along with its affiliated debtors—referred to as the FTX debtors—announced today that its Chapter 11 reorganization, which has been approved by the court, will take effect on January 3, 2025. This date has also been designated as the record date for determining the eligible creditors for the first wave of distributions, known as the Initial Distribution.
The initial distribution is expected to occur within 60 days following the effective date, specifically targeting groups identified as “Convenience Classes.” Other creditor categories will have their own distribution timelines communicated in the future.
John J. Ray III, the CEO of FTX, emphasized the diligent efforts undertaken over the past two years to recover significant funds for customers and creditors. He urged those owed money to prepare for the upcoming distributions. John J. stated:
“For the past two years, our team of professionals have meticulously and efficiently worked to recover billions of dollars to reach this point. The Plan becoming effective in January 2025 and the start of distributions are reflections of the outstanding success of the recovery efforts. We are well positioned to begin executing the distribution of recoveries back to all customers and creditors, and encourage customers to complete the necessary steps to begin receiving distributions in a timely manner.”
FTX Partners with BitGo and Kraken to Streamline Creditor Payments
It was also revealed that FTX has entered into agreements with two other companies to assist with the distribution process to both retail and institutional customers, as well as other creditors in specific regions, as permitted by the legal process and relevant regulations. The companies include BitGo, a regulated firm offering trading and settlement services to both retail and institutional clients since 2013, and Kraken, a major U.S.-based cryptocurrency exchange providing spot trading and regulated derivatives in 190 countries since its launch in 2011.
Eligible creditors must complete several necessary steps to receive their payments on the Initial Distribution date. These steps include logging into the FTX Customer Portal, completing Know Your Customer (KYC) verification, submitting required tax documentation, and onboarding with either BitGo or Kraken. Detailed instructions for this onboarding process will be provided on the FTX Customer Portal.
Furthermore, FTX issued a warning to customers to be vigilant against phishing emails that may appear to be from the FTX Debtors, as well as scam sites. They reiterated that FTX will never request sensitive information or ask customers to connect their wallets. FTX stated:
“Please remain aware of phishing emails that may look like they are from FTX Debtors and scam sites from channels that may appear to look like the FTX Debtors’ Customer Portal. This is another reminder that the FTX Debtors will never ask you to connect your wallets.”
FTX Digital Markets Ltd. will soon share a separate process for customers who choose to have the company handle their claims. Thus, the reorganization plan marks progress in returning funds to customers and creditors.
next
FTX Distribution Plan Sets January 3 Start, 60-Day Payout Window