After years of uncertainty, defunct cryptocurrency exchange FTX, previously led by convicted founder Sam Bankman-Fried, announced the effective date of its Chapter 11 reorganization plan aimed at distributing funds to customers concerned.
Initial distribution date set
On Monday, FTX Trading Ltd. and its affiliated debtors revealed that their court-approved Chapter 11 reorganization plan will take effect on January 3, 2025. This date has also been designated as the initial distribution record date for authorized claim holders within the plan’s convenience categories.
The initial distribution is expected to occur within 60 days of this effective date, although participation is subject to know-your-customer (KYC) and other criteria. distribution requirements.
Notably, initial distribution will be limited to plan convenience categories, with separate registration and payment dates for other claim categories to be announced in due course.
John J. Ray III, Chairman and CEO of FTX Debtors, expressed optimism about the progress made over the past two years. He declared:
Our team of professionals worked meticulously and efficiently to recover billions of dollars to get to this point. The entry into force of the plan in January 2025 and the start of distributions demonstrate the exceptional success of the recovery efforts. We are well positioned to begin distributing collections to all customers and creditors, and we encourage customers to take the necessary steps to begin receiving distributions in a timely manner.
BitGo and Kraken to help FTX distribute recoveries
To facilitate the distribution process, FTX announced that it has entered into agreements with two major crypto companies: BitGo and Kraken.
BitGo, a globally regulated custodian, has provided institutional-grade trading and settlement services since 2013, while Kraken, a US-based cryptocurrency exchange founded in 2011, offers spot and regulated trading . derivative products in up to 190 countries.
These partnerships are intended to ensure that recoveries are efficiently distributed to individual and institutional clients affected by corporate collapse, as well as other creditors in supported jurisdictions, in accordance with the reorganization plan.
For transferred receivables, distributions will only be made to the holder of the assignee of an authorized claim which has been processed and recorded in the official register of claims maintained by the Notices and Claims Officer as of the date of recording 3 January 2025. This is subject upon expiry of a notice period of 21 days without any objection.
At the time of writing, FTT, the native token of FTXsuffered a significant impact from recent news, coinciding with a bullish trend on the market in the last 24 hours.
FTT is currently trading at $3, emerging from a consolidation phase that lasted from April to September this year, during which it fluctuated between $1.30 and $1.50. Currently, the token has seen gains of 23% over the past two weeks and an impressive 52% over the past month.
Featured image of DALL-E, chart by TradingView.com
