According to the latest information, FTX expects the restructuring plan to come into effect in early January 2025.
The bankrupt cryptocurrency exchange will begin distributions to creditors in March at the latest.
FTX and its affiliated debtors announced that they have completed their Chapter 11 reorganization plan, which is expected to go into effect in January 2025. CEO John J. Ray III noted that initial distributions will begin within 60 days of the effective date and require clients to create accounts, complete KYC, and submit tax forms.
FTX provided the following updates on the expected timeline for distribution: In early December, the Borrowers expect to complete agreements with specialized distribution agents who will assist FTX in distributing recoveries globally to customers in supported regions. At that time, the Borrowers will be able to provide a
They will provide instructions for establishing a certified account with the Distribution Agent. By the end of December, the Debtors expect to announce the exact effective date following the entry of a Court Order approving the Disputed Claims Reserve Amount, which is a prerequisite for distributions under the Consent Order.
The Debtors currently anticipate that the Plan will become effective in early January 2025. Pursuant to the Consent Order, the first distribution will be made to permitted claimants in the Eligibility Classes of the Plan within 60 days thereafter. The distribution record date for the First Distribution will be the same date as the effective date.
*This is not investment advice.