FTX, its affiliates and their debtors The company informed its employees on December 16th that the reorganization would take place on January 3, 2025 and distributions could begin in 60 days.
FTX is partnering with BitGo, Kraken and other service providers to handle the distribution of retail and institution creditors. The claim portal states that these providers will make sure distributions across jurisdictions are done efficiently, securely and with stablecoins.
The initial distribution will only apply to creditors in the plan’s “Convenience Classes,” FTX has announced separate payment dates to other classes. The company also noted it would announce new distribution services providers via its official communication channels and customer portal.
FTX Chief Executive John J. Ray III said:
“We are well positioned to begin executing the distribution of recoveries back to all customers and creditors, and encourage customers to complete the necessary steps to begin receiving distributions in a timely manner.”
Ray also emphasized the importance of meeting eligibility requirements to receive payments promptly, urging creditors to complete necessary steps via the FTX Debtors’ Customer Portal.
Eligibility
Prior to the date of the first distribution, creditors who qualify for it must perform several steps. These include completing the Know Your Customer validations, filing tax forms and onboarding partners.:
The transfer of claims is only available to claimants who register their claims before Jan. 3 2025. They must also comply with a 21 day notice period.
FTX reminded users of phishing schemes and creditors to only use verified channels for official communication. The company said that they will never ask users to link their wallets, or give sensitive financial data outside the official client portal.
John Dorsey of the US Bankruptcy Court approved the $16.5-billion recovery plan in Wilmington (Delaware) on 7 October. Total value could drop to $14,7 billion once the cash is converted.
The FTX collapsed in Nov. 2022 after its founder, Sam Bankman-Fried, and other executives mismanaged customers’ funds and used them in other ventures. According to authorities, the FTX’s collapse caused around $9 million in financial losses for customers and investors.
Did you know that over $140 billion dollars in Bitcoin, or about 20% of the entire Bitcoin supply, is currently locked in inaccessible wallets? Or maybe you have lost access to your Bitcoin wallet? Don’t let those funds remain out of reach! AI Seed Phrase Finder is here to help you regain access effortlessly. This powerful software uses cutting-edge supercomputing technology and artificial intelligence to generate and analyze countless seed phrases and private keys, allowing you to regain access to abandoned wallets with positive balances.
