FTX to Begin Creditor Payments in 2025

The court-approved reorganisation plan for FTX will take effect on January 3, 2025. The initial distribution of funds among creditors with unsecured claims will occur within 60 days.

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

The timelines for other classes of claims will be announced by the exchange’s bankruptcy administrators at a later date.

“Over the past two years, our team of professionals has worked methodically and efficiently to recover billions of dollars to reach this point,” stated FTX Debtors CEO John Ray III.

To facilitate the payments, the exchange has entered into agreements with BitGo and Kraken. Sunil Kavuri, a representative of the largest group of creditors, noted that FTX has reserved a spot for a third partner on the debtor portal.

FTX Claims: Distribution

FTX has uploaded two distribution partners —
Bitgo and Kraken with a third coming soon
to the FTX Claims Portal pic.twitter.com/x48fogTQZE

— Sunil (FTX Creditor Champion) (@sunil_trades) December 16, 2024

To qualify for participation in the initial distribution, creditors must:

• register on the website;
• complete the mandatory KYC verification;
• submit the required tax forms;
• connect to BitGo and Kraken.

FTX Debtors will provide further instructions depending on the choice of distribution provider.

In October, Delaware bankruptcy judge John Dorsey approved the plan for creditor payments from the collapsed exchange.

The proposed compensation scheme was supported by 94.48% of FTX clients with claims on assets valued at $6.83 billion. Approximately 98% of creditors will receive at least 118% of their claims in fiat at the rate at the time of the bankruptcy filing.

FTX settled claims with the CFTC for $12.7 billion and reached a settlement with the US Internal Revenue Service on a lawsuit for $24 billion.