FTX Chapter 11 Plan of Reorganization Update
FTX and its affiliated debtors have announced that they are on track to implement their Chapter 11 Plan of Reorganization by Jan. 2025, which will set distributions for creditors and customers.
Timeline for Distributions
- Final arrangements with distribution agents to be completed in December
- Customers in supported jurisdictions can establish accounts through FTX’s customer portal
- Exact date for reimbursements to be revealed in December
- First round of distributions to start in January 2025
FTX CEO Statement
FTX CEO John J. Ray III stated: “We are pleased to announce that we will begin distributing proceeds in early 2025. The timeline laid out reflects the experience and continued work of the team of professionals supporting the Debtors, who already have recovered billions of dollars on behalf of FTX’s creditors and customers.”
Recovery Plan Approval
US Bankruptcy Judge John Dorsey approved the $16.5 billion recovery plan during a hearing in Wilmington, Delaware, on Oct. 7. The customer repayments rely on settlements made with FTX customers, creditors, US government agencies, and international liquidators.
Reimbursement Requirements
FTX emphasized that customers must establish approved accounts with distribution agents, complete Know Your Customer (KYC) verification, and submit tax forms before the distribution record date to qualify for the initial payout. Claims traders were also cautioned that transfers made within 45 days of the distribution record date might not be reflected in the claims register in time, potentially redirecting distributions to the original claim holders.
