FTX Chapter 11 plan to go into effect in January 2025, to help Kraken and BitGo recover
In the latest announcement, FTX and its co-debtors stated that the court-approved Chapter 11 reorganization plan will become effective on January 3, 2025.
The first distribution will take place in 60 days
The initial distribution is expected to take place within 60 days of the Effective Date. The initial distribution is limited to the eligible units of the plan. Separate filing and payment dates for other claim classes will be announced in due course.
“For the past two years, our team of professionals has worked diligently and efficiently to get billions of dollars to get to this point,” said John J. Ray III, CEO of FTX Borrowers.
In the year The plan, which will come into effect in January 2025, and the start of distribution are signs of the remarkable success of the recovery efforts. “We are well on our way to start returning the recovery distribution to all customers and creditors and we encourage customers to complete the necessary steps to start receiving distributions on time,” he said.
Kraken and Bitgo to help recovery
FTX also said it has entered into agreements with two companies to assist in distribution to retail and institutional customers and other lenders in supported jurisdictions. Crypto exchanges Kraken and Bitgo facilitate recovery for qualified creditors.
Customers and creditors with approved claims receive payments in cash or statucoins, depending on individual preferences and jurisdictional guidelines.
Notably, Kraken has previously assisted in similar matters, including payments related to the bankruptcy of lender Gox. Kraken stated, “We are proud to support this distribution process using our experience in asset recovery and distribution.
BitGo has emphasized its commitment to security in holding assets in the payment process. CEO Mike Belshe said he is honored to support FTX, protecting billions of crypto assets by prioritizing transparency and trust in institutions.
