FTX and its affiliates have announced that their reorganization plan will commence on January 3, 2025, aiming to commence creditor repayments within 60 days following this date.
Reorganization and Payments
FTX and its affiliates confirmed the commencement of their reorganization plan scheduled for January 3, 2025, marking the official date of exiting bankruptcy proceedings. Creditor payments will begin within 60 days. Initial payments will be made to users classified within the 'convenience classes', whose claims total $50,000 or less.
Role of BitGo and Kraken
To facilitate creditor repayment management, FTX partners with BitGo and Kraken. These companies will ensure secure and efficient fund distribution for retail and institutional creditors. Payments will be available across supported jurisdictions, with an option to receive them in stablecoins.
Recovery and Fund Return
As per the reorganization plan approved by a bankruptcy judge in October, FTX is permitted to return approximately 119% of claimed account values for 98% of users. Further payment dates will be announced for other creditor classes. To receive a payment, customers must enroll through the FTX Customer Portal.
The successful execution of the FTX reorganization plan demonstrates significant recovery efforts and the return of funds as per the company's outlined objectives.
