FTX sets controversial January 2025 deadline for bankruptcy recovery
- FTX Trading Ltd. announced its Chapter 11 Plan of Reorganization will be effective on January 3, 2025.
- The initial distribution to customers and creditors is expected to occur within 60 days of this effective date.
- FTX has entered into agreements with BitGo and Kraken to help facilitate the distribution process.
In the United States, on December 16, 2024, FTX Trading Ltd., together with its affiliated debtors, released significant information regarding their Chapter 11 Plan of Reorganization. The company stated that the effective date of this plan is set for January 3, 2025. Alongside this announcement, it revealed that the record date for the initial distribution to holders of allowed claims in the plan's Convenience Classes will also be on the same date. These steps form part of FTX's strategy to recover funds for its customers and creditors after a tumultuous period in its business operations. In preparation for the distribution process, FTX highlighted the necessity for customers and creditors to complete certain steps prior to the record date. This includes fulfilling know-your-customer (KYC) requirements, submitting requisite tax forms, and onboarding with their designated partners, BitGo or Kraken. The importance of meeting these stipulations underscores FTX's efforts to ensure compliance and proper administration of the distribution. Further details indicated that FTX has entered into agreements with BitGo and Kraken to facilitate the distribution of recoveries to affected customers and creditors in supported jurisdictions. As the company gears up for the effective date of its reorganization plan, it encourages stakeholders to complete the necessary procedures for a smooth transition into the distribution phase. Reflecting on the recovery efforts undertaken over the past two years, John J. Ray III, the Chief Executive Officer of FTX Debtors, expressed confidence in the success of their initiatives to recover billions of dollars. The announcement is a result of extensive professional work aimed at efficiently returning funds to those impacted by the company's financial challenges. FTX remains committed to updating its customers with any further necessary information regarding the distribution process to ensure all parties are adequately informed and prepared.