Outside Source
- FTX plans to start distributing $16 billion to creditors by March 2025.
- Distributions will begin 60 days after the Chapter 11 plan becomes effective in Jan.
- Customers must complete KYC verification and submit tax forms to receive payments.
The FTX estate, now under the leadership of CEO and Chief Restructuring Officer John J. Ray III, has revealed plans to begin distributing assets to creditors and customers by March 2025.
This follows a two-year period of intense recovery efforts after the collapse of the cryptocurrency exchange due to corporate mismanagement and fraud, which rocked the crypto world.
Ray, who stepped in after founder Sam Bankman-Fried filed for Chapter 11 protection in late 2022, has overseen the successful recovery of approximately $16 billion in cash and cryptocurrencies for the estate.
FTX distribution timeline
The timeline for distributions, outlined in a recent press release, marks a significant milestone in the lengthy process of compensating FTX’s creditors.
The company expects its Chapter 11 Plan of Reorganization to become effective in early January 2025, with the first distributions to begin within 60 days thereafter.
A key date in the process will be the distribution record date, which will coincide with the effective date of the reorganization plan.
To ensure they receive their share, customers must complete Know Your Customer (KYC) verification, submit required tax forms, and establish an approved account with one of FTX’s specialized distribution agents.
FTX’s restructuring efforts have been a lengthy and complex undertaking, but the company is now moving full steam ahead to distribute the recovered funds.
According to Ray, the process will be assisted by specialized distribution agents, who will help facilitate global payments to creditors and customers.
As part of the effort, FTX will finalize arrangements with these agents by early December, with specific instructions provided to customers through the existing portal.
While many creditors and customers will receive the majority of their assets back, the journey has been far from straightforward. The bankruptcy proceedings also saw Bankman-Fried convicted of fraud, sentenced to 25 years in prison, and facing appeals.
Meanwhile, other key figures in the scandal, such as co-founder Gary Wang and ex-Alameda co-CEO Caroline Ellison, received lighter sentences in exchange for their cooperation.
The FTX estate’s plan to distribute $16 billion signals a long-awaited resolution for many who were affected by the exchange’s collapse.
This article first appeared at CoinJournal: Latest Crypto News, Altcoin News and Cryptocurrency Comparison
