FTX and its affiliated debtors announced today that their court-approved Chapter 11 Plan of Reorganization will become effective on January 3, 2025. This date also marks the initial distribution record date for holders of allowed claims within the Plan’s Convenience Classes.
The initial distribution is anticipated to commence within 60 days of the effective date, subject to know-your-customer (KYC) and other distribution requirements. It’s important to note that this initial distribution is specifically for the Convenience Classes outlined in the plan. Separate record and payment dates for other claim classes will be announced later.
John J. Ray III, CEO of the FTX Debtors, stated, “Over the past two years, our team has diligently worked to recover billions of dollars to reach this milestone. The plan’s effectiveness in January 2025 and the commencement of distributions reflect the significant success of these recovery efforts. We are prepared to begin distributing recoveries to all customers and creditors and encourage customers to take the necessary steps to receive their distributions promptly.”
FTX also announced partnerships with BitGo and Kraken to facilitate the distribution of recoveries to retail and institutional customers and other creditors in supported jurisdictions, in accordance with the Plan. BitGo, a regulated custodian, and Kraken, a leading US-based cryptocurrency exchange, will play key roles in this process. FTX will announce any additional distribution service providers through its Customer Portal and official X.com account.
For transferred claims, distributions will be made solely to the transferee holding an allowed claim processed and recorded on the official claims register maintained by the Notice and Claims Agent as of the January 3, 2025 record date, provided the 21-day notice period has passed without objection. This clarifies the process for those who have transferred their claims.
