FTX and its affiliated debtors have confirmed that their Chapter 11 reorganization plan, approved by the court, will go into effect on January 3, 2025. The first round of creditor distributions is expected to occur within 60 days of the plan’s effective date.

The company disclosed agreements with BitGo and Kraken to facilitate the distribution process. 

FTX Creditors To Finally Recieve the Funds in 2025

According to the official notice, FTX outlined a timeline for the initial repayment of creditors more than two years after filing for Chapter 11 bankruptcy. The first group of eligible claim holders could see repayments within the set timeframe, subject to specific conditions.

To qualify for the initial distribution, creditors must complete tax documentation and onboard with either BitGo or Kraken. For claims that have been transferred, payments will only be made to the registered transferee listed on the official claims register as of January 3. 

Additionally, a 21-day objection period must pass without dispute before these distributions are processed. Further updates on repayments for other creditor groups are expected in the coming months. 

FTX creditors can choose to get reimbursed through a USD wire transfer or even stablecoin. A large part of these funds have been accumulated through lawsuits against several other exchanges and platforms. 

“FTX filed an adversary lawsuit (Nov-24) against Gate to recover $40m to return crypto assets held on the exchange. On-chain transfers reveal at least $35m returned to FTX-controlled wallets,” wrote Sunil, the self-proclaimed FTX creditor champion. 

FTX has also taken
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Author: Mohammad Shahid