FTX and its affiliated debtors announced on Dec. 16 that their reorganization plan will take effect on Jan. 3, 2025, with distributions commencing within 60 days.
Partnering with BitGo and Kraken, FTX will manage the distribution process for retail and institutional creditors. These service providers will ensure secure and efficient distributions across supported jurisdictions, allowing for distributions through stablecoins.
The initial distribution will focus on creditors in the plan’s “Convenience Classes,” with separate payment dates announced for other classes. FTX plans to introduce additional distribution service providers on its customer portal and official communication channels.
FTX CEO John J. Ray III expressed confidence in executing recoveries back to all customers and creditors, urging them to complete necessary steps promptly to receive distributions.
To be eligible for the Initial Distribution, creditors must complete key steps before the effective date, including KYC validations, tax form submissions, and onboarding with distribution partners. Distributions for transferred claims will only be made to registered holders meeting a 21-day notice period without objection.
FTX warned against phishing scams and emphasized that official communications will come through verified channels. The company will never request users to connect wallets or provide sensitive financial details outside the official customer portal.
The $16.5 billion recovery plan was approved by US Bankruptcy Judge John Dorsey on Oct. 7, with the total value potentially falling to $14.7 billion after cash conversion. The FTX collapse in Nov. 2022, attributed to mismanagement of funds by founder Sam Bankman-Fried and executives, left around 9 million customers and investors facing significant financial losses.