By Nermeen Nabil Khear 
Their Chapter 11 Plan of Reorganization, approved by the Court, will take effect on January 3, 2025. That date is also set as the record date for the first round of payments, known as the Initial Distribution.
This distribution will go to certain customers and creditors who are part of what’s called the “Convenience Classes.”
When Will Payments Happen?
Once the plan takes effect, the first payments are expected to roll out within 60 days. But hold your horses! Customers and creditors need to meet a few requirements before receiving their money. That includes things like completing know-your-customer (KYC) verification and submitting tax forms. If you’re eligible, you’ll need to act fast to stay in the loop.
FTX’s CEO, John J. Ray III, shared how far the company has come. “For the past two years, our team has worked tirelessly to recover billions of dollars to reach this point,” he said. “The Plan becoming effective in January 2025 and the start of distributions reflect the outstanding success of the recovery efforts. We are well positioned to start paying back customers and creditors.”
The FTX Debtors today announced that the effective date for its Plan of Reorganization has been set for January 3, 2025, which is also the initial distribution record date for holders of allowed claims in the Plan’s Convenience Classes. Read more here: https://t.co/7Hggm5cTlS
— FTX (@FTX_Official) December 16, 2024
Basically, after a tough journey, FTX is ready to put its money where its mouth is and start paying back what’s owed.
Who Will Help with Payments?
FTX has teamed up with two big names to handle the distribution process:
- BitGo: A company that’s been offering secure crypto services since 2013. It’s trusted by institutions and individual traders alike.
- Kraken: A leading U.S.-based cryptocurrency exchange, founded in 2011. It offers trading services in up to 190 countries.
These companies will help make sure payments go out smoothly to both retail customers (regular folks) and larger institutional creditors. If more companies join in, FTX will post updates on its Customer Portal and official X.com account.
We’ve entered into an agreement w/ FTX Trading Ltd. & its affiliated debtors to assist in distributing recoveries to retail customers in supported jurisdictions in accordance with the US bankruptcy court-approved Chapter 11 Plan of Reorganization
— Kraken Exchange (@krakenfx) December 16, 2024
What You Need to Do
To get your money during the Initial Distribution, here’s what you need to complete by January 3rd, 2025:
- Log in to the FTX Customer Portal at claims.ftx.com.
- Complete your KYC verification (to confirm your identity).
- Submit any tax forms required.
- Onboard with either BitGo or Kraken. Instructions will be available on the Customer Portal.
BitGo has been selected as an official FTX Creditor Distributor.
We are fully committed to ensuring a secure and efficient process for distributing assets to creditors.
Our goal is to make this process as simple as possible so creditors can trade, stake, withdraw, or custody… pic.twitter.com/HtoV9x6D5W
— BitGo (@BitGo) December 16, 2024
If you’ve transferred your claim to someone else, only the official holder as of January 3rd will receive the payment. Make sure everything is squared away by then.
Disclaimer
The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence. Copyright Altcoin Buzz Pte Ltd.
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This articles is written by : Nermeen Nabil Khear Abdelmalak
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