- FTX’s reorganization plan effective from January 3, 2025, initiates customer and creditor payments within two months of the date.
- FTX collaborates with BitGo and Kraken to facilitate payments, ensuring secure and compliant distribution to eligible parties.
- Compliance with KYC and tax documentation necessary for creditors to receive payments under the newly effective FTX Plan.
FTX Trading Ltd., commonly known as FTX.com, alongside its affiliate entities, collectively referred to as “FTX Debtors” has announced the enactment of its Chapter 11 bankruptcy reorganization plan.
Set to take effect on January 3, 2025, this plan outlines the initiation of compensations under specific claim classifications, termed as the Plan’s Convenience Classes.
The first compensations are scheduled within 60 days post-activation of the plan, contingent on compliance with requisite know-your-customer and other regulatory prerequisites.
John J. Ray III, CEO of the FTX Debtors, highlighted the diligent efforts over the past two years by their professional team to amass substantial recoveries, culminating in this milestone. As we’ve discussed on ETHNews, Ray stressed the importance of stakeholders completing necessary protocols to receive their distributions efficiently.
For the distribution process, FTX has secured collaborations with BitGo and Kraken to manage the logistical aspects of transferring funds to both retail and institutional clients within approved jurisdictions.
BitGo brings its expertise as a comprehensive, globally regulated custodian, while Kraken extends its robust trading and financial services platform accessible globally.
Participants must undertake several preparatory steps to qualify for the initial distribution, including verification through the FTX Debtors’ Customer Portal, completion of KYC processes, and the submission of relevant tax documents.
Additionally, instructions for integrating with BitGo or Kraken will be provided through the portal to streamline the onboarding process.
FTX has taken measures to caution its clients about the increased risk of phishing attacks following the reorganization announcement. Clients are advised to only interact through officially verified channels and remain vigilant about the authenticity of communications received.
Detailed information about this reorganization and subsequent distributions is available on Kroll’s dedicated case management website, which provides continuous updates and access to court filings related to the proceedings.
Lastly, as noted on ETHNews, FTX Digital Markets Ltd. (“FTX DM“) is set to announce its tailored distribution framework for clients who opted for their claims to be managed separately by FTX DM, ensuring a comprehensive and structured approach to addressing all claims and distributions.
