2024-11-22 05:00 |
FTX and its affiliated debtors announced they are on track to implement their Chapter 11 Plan of Reorganization by Jan. 2025, which will set distributions for creditors and customers.
According to the timeline shared in the firm’s announcement, the final arrangements with specialized distribution agents will be completed in December, allowing customers in supported jurisdictions to establish accounts through FTX’s customer portal.
Additionally, the firm will reveal the exact date for reimbursements during the same month once it has secured court approval for the Disputed Claims Reserve Amount.
The first round of distributions will start in January 2025, targeting holders in the Convenience Classes, and will be scheduled within 60 days of the effective date.
FTX CEO John J. Ray III stated:
“We are pleased to announce that we will begin distributing proceeds in early 2025. The timeline laid out reflects the experience and continued work of the team of professionals supporting the Debtors, who already have recovered billions of dollars on behalf of FTX’s creditors and customers.”
US Bankruptcy Judge John Dorsey approved the $16.5 billion recovery plan during a hearing in Wilmington, Delaware, on Oct. 7. The customer repayments rely on settlements made with FTX customers, creditors, US government agencies, and international liquidators.
The approved plan prioritizes FTX customers, enabling the exchange to repay their claims first, ahead of competing claims from government regulators.
The total value recovered could be as high as $16.5 billion, subject to falling to $14.7 billion after its cash conversion.
The FTX collapsed in Nov. 2022 after its founder, Sam Bankman-Fried, and other executives mismanaged customers’ funds and used them in other ventures. Authorities estimate the FTX collapse left around 9 million customers and investors facing substantial financial losses.
Reimbursement requirementsFTX emphasized that customers must establish approved accounts with distribution agents, complete Know Your Customer (KYC) verification, and submit tax forms before the distribution record date to qualify for the initial payout.
Claims traders were also cautioned that transfers made within 45 days of the distribution record date might not be reflected in the claims register in time, potentially redirecting distributions to the original claim holders.
The post FTX on track to rollout repayment plan in January 2025 appeared first on CryptoSlate.
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