The bankrupt cryptocurrency exchange FTX has chosen crypto custodian BitGo and former rival exchange Kraken as partners for distributing payments to creditors. This announcement marks a significant step towards returning funds to the exchange's clients.
Appointment of BitGo and Kraken
FTX has confirmed BitGo and Kraken as distribution partners. Creditors can also receive payments in stablecoins by converting their fiat into digital assets. BitGo stated that users could securely reclaim assets via its platform. Kraken also confirmed its role in this distribution process.
Reorganization Plan and Creditor Payouts
FTX has set January 3, 2025, as the effective date for its reorganization plan. Initial distributions are set to commence within 60 days of this date. Creditors need to meet distribution requirements to receive funds.
Recovery from Gate.io
As part of its recovery efforts, FTX recovered approximately $35 million from Gate.io. This was the result of a lawsuit filed against the exchange in November. Recovery work is ongoing, and yielding results.
FTX's plans for returning funds to creditors are ongoing, despite the challenges faced during the bankruptcy process. The exchange is actively working to satisfy creditor claims and recover lost assets.
