Emily Walker
After a prolonged period of doubt, the failed cryptocurrency exchange FTX, once overseen by the now-convicted founder Sam Bankman-Fried, has revealed the date for its Chapter 11 reorganization plan aimed at compensating affected customers.
Date for Initial Disbursement Announced
FTX Trading Ltd. and its associated debtors announced that their court-sanctioned Chapter 11 Reorganization Plan will officially start on January 3, 2025. This date will also serve as the initial distribution record date for claim holders in the convenience classes outlined in the plan.
The first distribution is anticipated to take place within 60 days after the effective date, but participants must meet know-your-customer (KYC) and other distribution prerequisites.
The initial distribution will be confined to the Convenience Classes specified in the plan, with additional record and payment timelines for other claim classes to be provided later.
John J. Ray III, CEO of the FTX Debtors, shared his positive sentiments about the advancements achieved in the last two years, stating:
We have worked diligently to recover billions of dollars to reach this milestone. The plan going into effect in January 2025 and the upcoming distributions showcase the success of our recovery initiatives. We are well-prepared to begin returning recoveries to all customers and creditors and encourage them to finalize the necessary steps for timely distributions.
Collaboration with BitGo and Kraken for Distribution
FTX has partnered with two prominent cryptocurrency companies, BitGo and Kraken, to streamline the distribution process.
BitGo, a regulated global custodian, has been offering institutional trading and settlement services since 2013, while Kraken, established in 2011, is a US-based exchange that provides spot trading and regulated derivatives in nearly 190 countries.
These partnerships are designed to ensure efficient distribution of recoveries to retail and institutional customers affected by the company’s downfall, as well as to other creditors, adhering to the reorganization plan.
For claims that have been transferred, distributions will exclusively go to the transferee holder of a verified claim registered with the official claims register maintained by the Notice and Claims Agent as of the January 3, 2025 record date. This process will be valid after a 21-day notice period passes without objections.
As of this report, the native token FTT has been notably influenced by the recent developments, aligning with a broader market uptrend in the last 24 hours.
FTT is trading at $3, having emerged from a consolidation phase that persisted from April to September, where it fluctuated between $1.30 and $1.50. Currently, the token has seen a 23% increase over the past two weeks and an impressive 52% rise over the last month.
Image sourced from DALL-E, chart from TradingView.com