FTX Chapter 11 Plan of Reorganization Update
FTX and its affiliated debtors announced on Dec. 16 that their reorganization plan will take effect on Jan. 3, 2025, with distributions starting within 60 days.
Partnerships for Distribution
- FTX has partnered with BitGo and Kraken to manage the distribution process for retail and institutional creditors.
- Service providers will ensure secure and efficient distributions across supported jurisdictions, including distributions through stablecoins.
Distribution Details
- Initial distribution only applies to creditors in “Convenience Classes.”
- Separate payment dates will be announced for other classes.
- Additional distribution service providers will be announced on the customer portal and official communication channels.
FTX CEO John J. Ray III stated, “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.”
Ray emphasized meeting eligibility requirements for prompt payments and urged creditors to complete necessary steps via the FTX Debtors’ Customer Portal.
Eligibility Requirements
- Creditors must complete know-your-customer validations, submit tax forms, and onboard with distribution partners before the effective date.
- Distributions for transferred claims require registration by Jan. 3, 2025, and meeting a 21-day notice period without objection.
FTX warned users about phishing scams and reminded creditors that official communications will only come through verified channels. The company will never request users to connect wallets or provide sensitive financial details outside the official customer portal.
US Bankruptcy Judge John Dorsey approved the $16.5 billion recovery plan in Wilmington, Delaware, on Oct. 7. The total value may fall to $14.7 billion after cash conversion.
