FTX completes reorganization: customer payouts to begin in January 2025
FTX to start payouts in 2025 after Chapter 11 conclusion
The cryptocurrency exchange FTX and its affiliates have announced that their reorganization plan, tied to the conclusion of Chapter 11 bankruptcy proceedings, will take effect on January 3, 2025.
This date also marks the initial record date for creditor payouts, with the first distribution expected within 60 days of the effective date, contingent upon compliance with know-your-customer (KYC) and other necessary distribution requirements.
Recovery efforts and execution
John J. Ray III, CEO of FTX Debtors, expressed satisfaction with the progress made: “Over the past two years, our team of professionals has meticulously and efficiently worked to recover billions of dollars to reach this point. The plan’s effectiveness in January 2025 and the start of distributions reflect the outstanding success of the recovery efforts. We are well-positioned to begin returning funds to customers and creditors, and we encourage customers to complete the necessary steps to ensure timely receipt of their distributions.”
To streamline the distribution process for both retail and institutional claimants, FTX has partnered with BitGo and Kraken. FTX emphasized that additional service providers may be announced via the FTX Debtors’ customer portal and their official X.com account.
Steps to receive the Initial distribution
Eligible customers and creditors must complete the following steps before the January 3 record date:
Log in to the FTX Debtors’ Customer Portal.
Complete the KYC verification process.
Submit the required tax documentation.
Onboard with BitGo or Kraken, following instructions provided on the portal.
Customer protection and reminders
FTX warned customers to remain vigilant against phishing emails and fraudulent websites posing as the official FTX Debtors’ Portal. FTX reiterated that it will never ask for wallet connections.
Additionally, FTX Digital Markets Ltd. intends to soon announce a separate distribution process for customers who have chosen to have their claims processed through FTX DM.
This announcement marks a significant milestone in FTX's restructuring efforts, aimed at delivering long-awaited payouts to its global customers and creditors.
Earlier, FTX filed a lawsuit against Binance and its co-founder Changpeng Zhao, demanding the return of $1.76 billion, which FTX claims was fraudulently transferred.
