- FTX will begin customer distributions in January in January 2025.
- The exchange collapsed in November 2022, with major repurcussions for the greater industry.
FTX debtors will commence customer distribution in early January, with its court-approved Chapter 11 bankruptcy reorganization becoming effective on January 3, 2025.
The collapsed crypto exchange announced on Dec. 16 that initial distributions under the plan will occur within 60 days. Participation will be subject to know-your-customer (KYC) among other requirements. Meanwhile, FTX will work with crypto custodian BitGo and crypto exchange Kraken to distribute assets to retail and institutional customers.
The FTX Debtors today announced that the effective date for its Plan of Reorganization has been set for January 3, 2025, which is also the initial distribution record date for holders of allowed claims in the Plan’s Convenience Classes. Read more here: https://t.co/7Hggm5cTlS
— FTX (@FTX_Official) December 16, 2024
John J. Ray III, chief executive officer of the FTX Debtors, commented:
“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.”
BitGo chief executive officer Mike Belshe also commented on the plan and BitGo’s role.
“BitGo is proud to support FTX,” he said. “With our long-standing reputation as the most secure choice in the industry, we work hard to bring institutional-grade service to both retail and institutional clients, ensuring users the peace of mind they need to manage and grow their assets safely.”
FTX collapsed in November 2022, with five of the top executives jailed or sentenced to time served. This includes former CEO Sam Bankman-Fried.
The FTT token jumped 7% after the distribution news.
