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FTX Trading Ltd. (FTX) and its affiliated debtors have locked in Jan. 3, 2025, as the kickoff day for their court-endorsed Chapter 11 Reorganization Plan.
FTX Creditor Distribution Is Coming Soon
According to the press release, this date will also act as the debut distribution record for creditors within the plan’s convenience categories. In the last couple of years, FTX has been on a mission to reclaim its assets after its headline-making bankruptcy. John J. Ray III, the company’s CEO, celebrated the plan’s green light as a pivotal moment in their recovery journey.
“The plan becoming effective in January 2025 and the start of distributions are reflections of the outstanding success of the recovery efforts,” he stated.
Creditors in certain claim brackets can expect to see their first distributions within 60 days after the plan’s effective date. To cash in, claimants need to jump through the hoops of know-your-customer (KYC) verification, hand in their tax documents, and sign up with either Bitgo or Kraken through the FTX Debtors’ customer portal.
To make things smoother, FTX has teamed up with Bitgo, a regulated crypto custodian, and Kraken, a homegrown U.S. crypto exchange. These partners, FTX said, will help funnel recoveries to both retail and institutional creditors in approved regions. More helpers might join the party as needed, the announcement further details.
Claimants need to keep their details spick and span on the FTX claims portal by Jan. 3. Claims that have changed hands will be handled according to the official claims list on that day. FTX has put out a reminder to stay sharp against phishing scams and fake platforms, stating that only official channels will share legitimate updates.
FTX’s bankruptcy saga has turned heads as one of the biggest flops in the crypto world.