NASSAU, BAHAMAS — FTX and its affiliate debtors have announced that their Court-approved Chapter 11 Plan of Reorganization will become effective on January 3, 2025, with initial distributions for allowed claims in the Plan’s Convenience Classes expected within 60 days. Distributions are subject to Know Your Customer (KYC) verification and other requirements, while dates for other claim classes will be announced separately.
John J. Ray III, Chief Executive Officer of the FTX Debtors, stated: “For the past two years, our team of professionals have meticulously and efficiently worked to recover billions of dollars to reach this point. The Plan becoming effective in January 2025 and the start of distributions are reflections of the outstanding success of the recovery efforts. We are well positioned to begin executing the distribution of recoveries back to all customers and creditors, and encourage customers to complete the necessary steps to begin receiving distributions in a timely manner.”
FTX, which had headquartered its operations in The Bahamas under the leadership of founder Sam Bankman-Fried prior to its collapse in November 2022, has now entered into agreements with two companies to facilitate the distribution of recoveries to both retail and institutional customers, as well as other creditors, in supported jurisdictions and in accordance with the Plan. BitGo, a full-service globally regulated custodian, has provided institutional-grade trading and settlement services since 2013. Kraken, a leading U.S.-based cryptocurrency exchange founded in 2011, enables spot trading, regulated derivatives, and more, with availability in up to 190 countries. If additional distribution service providers are onboarded, updates will be posted on the FTX Debtors’ Customer Portal and the official X.com account.
To receive an initial distribution, customers and other creditors must complete the following steps before the January 3, 2025 record date: log in to the FTX Debtors’ Customer Portal, complete KYC verification, submit required tax forms, and onboard with BitGo or Kraken. Instructions for onboarding will be provided on the Customer Portal. For transferred claims, distributions will be made only to the transferee holder of an allowed claim processed and reflected on the official claims register by the record date after the 21-day notice period has lapsed without objection.
FTX’s dramatic collapse in 2022, which led to the arrest and conviction of Sam Bankman-Fried on charges of fraud and conspiracy, sent shockwaves through the global cryptocurrency industry and had significant economic implications for The Bahamas, where FTX Digital Markets was based.
Customers are urged to remain cautious of phishing emails and fraudulent websites imitating the FTX Debtors’ Customer Portal.
FTX Digital Markets Ltd. (FTX DM), the Bahamian entity, will separately announce a distribution process for customers who have chosen to have their claims administered by FTX DM.
The FTX Debtors are represented by Sullivan & Cromwell LLP as legal counsel, Alvarez & Marsal North America, LLC as financial advisor, Perella Weinberg Partners LP as an investment banker, Quinn Emanuel Urquhart & Sullivan, LLP as special counsel, and Landis Rath & Cobb LLP as Delaware counsel.
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