FTX Reorganization Plan Will Take Effect on January 3

Key Points:

• FTX reorganization plan will take effect on January 3, 2025, with distributions starting within 60 days.
• FTX partnered with BitGo and Kraken to ensure secure and efficient payments.

FTX and its affiliates have announced that their reorganization plan will come into effect on January 3, 2025 – the official date of completion, or substantial consummation, of the company’s bankruptcy recovery process. Repayments to creditors shall begin within 60 days of this date.

Read more: FTX Liquidator Transfers RAY Worth Millions To Binance  

FTX Reorganization Plan Set to Start January 2025

FTX, as part of paying the creditors, is using BitGo and Kraken to facilitate the management of repayment. The companies provide seamless and secure disbursement of funds for all retail as well as institutional creditors. Payment distribution of these amounts will take place over supported jurisdictions, and there will be an option to receive the repayment in stablecoins.

The January 3 date will also mark the first distribution record for creditors in the “convenience classes,” which include those users with claims of $50,000 or less. FTX’s CEO John J. Ray III commented on the progress of the FTX reorganization plan as a critical feat, saying:

“The plan becoming effective in January 2025 and the start of distributions are reflections of the outstanding success of the recovery efforts.”

Creditors to Receive 119% of Claims as Recovery Continues

As per FTX, further payment dates will be made known on the payment to the other classes of creditors in due course. To receive any payment, customers are expected to enrol through the FTX Customer Portal. As for claims transferred to third parties, the only current claim holders, as of January 3, 2025, will be entitled to them.

FTX reorganization plan, pursuant to approval by a bankruptcy judge in October, has permitted the company to return approximately 119% of the claimed account values for 98% of users.