FTX has announced that its bankruptcy plan or the plan of reorganization, which the Court approved, will come into effect on January 3, 2025. This date will also be the record date for the first round of payments to some creditors.
These payouts are part of the Plan’s Convenience Classes and are expected to start within 60 days after the effective date.
According to the press release, customers and creditors will be required to go through a few steps in the process of getting their payouts, including proving who they are with Know Your Customer (KYC) process, submission of tax forms, and registration on a platform that FTX designates from its official list of partners for the distribution. It also announced specific payout dates for other classes of creditors would be forthcoming.
John J. Ray III, the CEO of FTX, made a statement to observe the progress made so far: “For the past two years, our team of professionals have meticulously and efficiently worked to recover billions of dollars to reach this point. The Plan becoming effective in January 2025 and the start of distributions are reflections of the outstanding success of the recovery effort.”.
Two firms have been contracted by FTX to assist in paying out the funds so that they reach the right customers and creditors. Customers have to register with either of the two firms by following instructions on the official FTX Customer Portal. In the event that a claim had been assigned to another party, only the current holders as of January 3, 2025, shall receive the payout.
FTX also cautioned everyone against scams. The company reminds customers to steer clear of phishing emails or fake websites impersonating FTX. The company will never ask for wallet connections or personal information via email. FTX also said customers should check for updates on the official Customer Portal or FTX’s verified account on X
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