FTX is moving forward with their repayment plan, which is set to begin in January 2025. The final details will be sorted out next month, and repayments will start early in the new year.
The Chapter 11 Plan of Reorganization will be implemented by FTX and its affiliated debtors. This plan will determine how creditors and customers will be repaid. The company is working with distribution agents to finalize all arrangements by December. Customers in supported regions will be able to set up accounts through FTX’s customer portal.
Once court approval is obtained for the Disputed Claims Reserve Amount, the exact date for reimbursements will be announced in December. The first round of distributions will start in January 2025, focusing on holders in the Convenience Classes and will occur within 60 days of the effective date.
CEO John J. Ray III expressed his satisfaction with the progress, mentioning that the team has already recovered billions of dollars for FTX’s creditors and customers.
The $16.5 billion recovery plan was approved by US Bankruptcy Judge John Dorsey in October. This plan prioritizes FTX customers, ensuring they are repaid before other claims are settled. The total value recovered could be as high as $16.5 billion, but this may decrease to $14.7 billion after the cash conversion.
FTX faced collapse in November 2022 due to mismanagement of funds by its founder and executives. Approximately 9 million customers and investors suffered significant financial losses as a result.
Customers looking to receive reimbursements must follow specific requirements. They need to establish approved accounts with distribution agents, complete KYC verification, and submit tax forms before the distribution record date to qualify for the initial payout. Traders with claims were advised that transfers made within 45 days of the distribution record date might not be processed in time.
FTX is focused on moving forward with their repayment plan and ensuring that customers and creditors receive their due payments. The company remains committed to resolving the fallout from their collapse in a timely and organized manner.