In a significant development, FTX and its affiliated debtors have announced the implementation timeline for their Court-approved Chapter 11 Plan of Reorganization. This plan is slated to become effective on January 3, 2025, marking a pivotal step in FTX’s journey towards financial recovery and stability.
Anticipated First Distribution Within 60 Days
Following the effective date, the initial distribution is scheduled to occur within a 60-day window. This Initial Distribution will primarily target the Plan’s Convenience Classes, ensuring that these creditors begin receiving their entitlements promptly. For other classes of claims, record and payment dates will be communicated at a later stage.
John J. Ray III, the Chief Executive Officer of the FTX Debtors, stated, “Over the past two years, our dedicated team has diligently worked to recover billions of dollars to reach this milestone.” He further elaborated, “The effectiveness of the Plan in January 2025, along with the commencement of distributions, underscores the remarkable success of our recovery efforts. We are well-prepared to initiate the distribution process, returning recoveries to all customers and creditors. We urge customers to complete the necessary steps to ensure timely receipt of their distributions.”
Strategic Partnerships with Kraken and BitGo for Recovery Assistance
FTX has strategically partnered with Kraken and BitGo to facilitate the distribution of recoveries to its retail and institutional clients and other creditors across supported jurisdictions. These partnerships are designed to streamline the distribution process, ensuring that eligible creditors receive their recoveries efficiently.
Eligible customers and creditors with approved claims will have the option to receive payments in either cash or stablecoins, based on their preferences and the guidelines of their respective jurisdictions. Kraken, which has a proven track record in handling similar cases, including the Mt. Gox bankruptcy, expressed its commitment, stating, “We are proud to support this distribution process, leveraging our experience in asset recovery and distribution.”
BitGo, known for its robust security measures, emphasized its dedication to safeguarding assets during the repayment process. CEO Mike Belshe highlighted BitGo’s role in securing billions in crypto assets for institutions and its focus on transparency and trust. He stated, “We are honored to support FTX in this endeavor, ensuring a secure and transparent distribution process.”
With these strategic partnerships and planned distributions, FTX is poised to make significant strides in its recovery efforts, offering a structured path forward for all stakeholders involved.
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