FTX has announced when it will start paying back its creditors and customers. The company’s Chapter 11 reorganization plan, approved in October 2024, is expected to become effective in January 2025.
According to the press release, the company will begin distributing proceeds to creditors within 60 days after the plan’s effective date.
John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of FTX, expressed the company’s commitment to finalizing the process. “We are pleased to announce that we will begin distributing proceeds in early 2025,” Ray said. “
As part of the reorganization plan, FTX has set specific requirements for customers and creditors to receive their payouts. Customers must establish an approved account with one of FTX’s distribution agents and complete Know Your Customer (KYC) verification.
They will also need to submit the required tax forms before the distribution record date. The company is working with distribution agents to manage the payouts and ensure compliance across global jurisdictions. The final arrangements with these agents are expected to be completed by early December 2024.
FTX will announce the specific date for payouts before the end of December after the court has approved the Disputed Claims Reserve Amount. The first tier of payments will go to the holders of allowed claims in the Plan’s Convenience Classes, with the initial payments expected within 60 days of the effective date of the Plan.
Claims traders should note that transfers made within 45 days of the distribution record date may not be reflected in the claims register, and distributions on these claims may go to the transferor
The company’s plan includes paying over $6.6 billion to its creditors. About 96% of creditors support the plan, making it one of the largest repayment efforts in recent history.
