FTX Trading Ltd. (d.b.a. FTX.com) and its affiliated debtors (“FTX”) announced significant progress in finalizing the steps required to activate its Chapter 11 Plan of Reorganization (the “Plan”). This marks a key milestone in FTX’s ongoing bankruptcy proceedings, paving the way for creditor and customer distributions starting in early 2025.
John J. Ray III, Chief Executive Officer and Chief Restructuring Officer for FTX, stated:
“We are pleased to announce that we will begin distributing proceeds in early 2025. The timeline reflects the dedication of our team and the progress made in recovering billions of dollars on behalf of creditors and customers. We are committed to ensuring distributions occur as quickly as possible.”
Timeline for Distributions
FTX outlined a clear schedule for completing its obligations and initiating distributions:
- Early December 2024: Finalizing agreements with specialized distribution agents who will manage global recoveries. Customers will receive instructions to set up approved accounts via the existing customer portal.
- End of December 2024: The court is expected to approve the Disputed Claims Reserve Amount, after which FTX will announce the Plan’s effective date.
- Early January 2025: The Plan becomes effective. The first distribution—targeted at holders of allowed claims in the Convenience Classes—will occur within 60 days of the effective date.
Requirements for Customers
Customers must complete specific steps to receive distributions:
- Establish an approved account with a Distribution Agent.
- Complete Know Your Customer (KYC) verification.
- Submit necessary tax documentation.
Failure to complete these steps by the distribution record date may result in delays in receiving proceeds.
Impact on Claims Trading
Claims traded within the 45-day window before the distribution record date may not be updated in the claims register on time, potentially affecting the receipt of distributions. According to Section 7.4.1 of the Plan, these payments may be sent to the transferor instead.
Legal and Financial Updates
Details about the Chapter 11 proceedings, including the Plan and associated court documents, are available on FTX’s dedicated website: https://cases.ra.kroll.com/FTX/.
