FTX and its affiliated debtors announced on Dec. 16 that their reorganization plan will take effect on Jan. 3, 2025, and distributions will commence within 60 days.

FTX has partnered with BitGo and Kraken to manage the distribution process for retail and institutional creditors. According to the claim portal, these service providers will ensure distributions are executed efficiently and securely across supported jurisdictions while also allowing distributions through stablecoins.

The initial distribution will only apply to creditors in the plan’s “Convenience Classes,” and FTX will announce separate payment dates for other classes. Additionally, the firm noted that it will announce additional distribution service providers on its 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 also emphasized the importance of meeting eligibility requirements to receive payments promptly, urging creditors to complete necessary steps via the FTX Debtors’ Customer Portal.

Eligibility  

Creditors eligible for the Initial Distribution must complete several key steps before the effective date, such as completing know-your-customer validations, submitting tax forms, and onboarding with distribution partners.:  

Distributions for transferred claims will only be made to holders whose claims are registered by Jan. 3, 2025, and meet a 21-day notice period without objection.   

FTX warned users to avoid phishing scams and reminded creditors that official communications will only come through verified channels. The com

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Author: Gino Matos