FTX Reorganization Plan Set For January 3, Distributions To Commence Within 60 Days
By Benzinga
FTX on Monday announced that its Chapter 11 bankruptcy reorganization plan will become effective on Jan. 3, 2025.
Customer and creditor distributions will be facilitated through partnerships with cryptocurrency platforms Kraken and BitGo.
The first round of distributions is expected to occur within 60 days of the plan’s effective date.
The initial distribution will cover holders of allowed claims in the Convenience Classes, while timelines for other claim classes will be announced later, according to a press release.
Customers and creditors eligible for distributions must complete several steps, including logging into the FTX Customer Portal, completing Know Your Customer (KYC) verification, submitting necessary tax forms, and onboarding with Kraken or BitGo.
Detailed onboarding instructions will be provided through the portal.
FTX CEO John J. Ray III highlighted the significance of these developments, saying, “The Plan becoming effective in January 2025 and the start of distributions are reflections of the outstanding success of the recovery efforts.”
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He added that meticulous work over the past two years has helped recover billions of dollars, positioning the company to begin returning funds to customers and creditors.
Kraken and BitGo will handle the distribution of recovered funds across supported jurisdictions.
FTX noted that additional service providers may be announced in the future through its Customer Portal and official communication channels.
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