After years of uncertainty, cryptocurrency exchange FTX, previously led by disgraced founder Sam Bankman Fried, has announced the effective date of its Chapter 11 reorganization plan aimed at distributing funds to… Affected customers.
Set the initial distribution date
On Monday, FTX Trading Ltd. and its debtors open The court-approved Chapter 11 reorganization plan will become effective on January 3, 2025. This date has also been designated as the record date for the initial distribution to holders of allowable claims within the plan’s suitability classes.
The initial distribution is expected to occur within 60 days of this effective date, although participation will be subject to Know Your Customer (KYC) and other rules. Distribution requirements.
It is worth noting that the initial distribution will be limited to the plan’s convenience categories, with separate enrollment and payment dates for other claim categories to be announced in due course.
John J. Ray III, CEO of FTX Debtors, expressed optimism about the progress made over the past two years. He said:
Our team of professionals have meticulously and efficiently recovered billions of dollars to get to this point. The entry into force of the plan in January 2025 and the start of distribution is a reflection of the outstanding success of the recovery efforts. We are well positioned to begin implementing distributions of refunds to all customers and creditors, and we encourage customers to complete the necessary steps to begin receiving distributions in a timely manner.
BitGo and Kraken to help FTX distribute refunds
To facilitate the distribution process, FTX announced that it has entered into agreements with two major cryptocurrency companies: BitGo and Kraken.
BitGo, a globally regulated custodian, has been offering institutional-grade trading and settlement services since 2013, while Kraken, a US-based cryptocurrency exchange founded in 2011, offers spot and regulated trading. Derivatives Across up to 190 countries.
These partnerships aim to ensure that recoveries are effectively distributed to both retail and institutional clients affected by corporate collapses, as well as other creditors in the supported jurisdictions, in accordance with the reorganization plan.
For transferred claims Distributions It will only be provided to the holder of an permitted claim that has been processed and registered in the official register of claims maintained by the Notices and Claims Agent as of the registration date of 3 January 2025. This is subject to the expiration of a 21 day notice period without any objections.
At the time of writing, it is FTT, the original token of FTXhas seen a significant impact from recent news, coinciding with a broader scope Uptrend On the market in the last 24 hours.
FTT is currently trading at $3, surpassing a consolidation phase that lasted from April to September of this year, during which it fluctuated between $1.30 and $1.50. At present, the coin has recorded gains of 23% over the past two weeks and 52% over the past month.
Featured image of DALL-E, chart from TradingView.com