News Scrap

Key Takeaways

FTX plans to start distributing proceeds to creditors and customers in early 2025.
Eligible customers must complete KYC verification and submit required tax forms to receive distributions.

FTX, the infamous crypto exchange once led by Sam Bankman-Fried, plans to begin distributing proceeds to creditors and customers in early 2025 as it nears completion of its Court-approved Chapter 11 Plan of Reorganization.

The exchange aims to distribute an estimated $16 billion in recoveries as part of this effort.

“We are pleased to announce that we will begin distributing proceeds in early 2025,” said John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of the FTX Debtors.

Ray stated that the timeline reflects the expertise and ongoing efforts of the professional team supporting the debtors, who have already recovered billions of dollars for FTX’s creditors and customers.

This news follows a series of recent court decisions involving key figures in the FTX collapse.

Caroline Ellison, the former CEO of Alameda Research, a subsidiary of FTX, was sentenced to two years in prison.

FTX co-founder Gary Wang avoided prison time and was sentenced to three years of supervised release.

Nisha Singh, a top adviser to FTX, avoided prison time altogether. Sam Bankman-Fried, FTX’s founder, received the harshest sentence, with 25 years in prison.

The crypto exchange expects to finalize arrangements with specialized distribution agents in early December, who will assist in distributing recoveries to customers globally in supported jurisdictions.

By the end of December, FTX plans to announce the exact effective date after receiving Court approval for the Disputed Claims Reserve Amount.

The company anticipates the Plan to become effective in early January 2025, with the first distribution to holders of allowed claims in the Plan’s Convenience Classes occurring within 60 days thereafter.

To receive distributions, customers must establish an approved account with a Distribution Agent, complete KYC verification, and submit required tax forms before the distribution record date.

For claims traders, transfers made within 45 days of the distribution record date may not be reflected in the claims register, potentially resulting in distributions being made to the transferor.