FTX Details $16 Billion Distribution Timeline for Customers and Creditors
The resolution for nearly $16 billion in funds owed to users of the defunct crypto exchange FTX is approaching, as the estate managing recovery has outlined the next steps and timeline for distribution.
FTX Nears Completion Of Chapter 11 Plan
FTX announced that it is nearing completion of the prerequisites for its Court-approved Chapter 11 Plan of Reorganization, marking a significant milestone toward initiating creditor and customer distributions. John J. Ray III, CEO of FTX Debtors, stated distributions are expected to begin in “early 2025.”
Ray noted the team has reportedly recovered “billions of dollars to date” and is committed to maximizing recoveries while finalizing arrangements with distribution agents to expedite fund returns.
FTX plans to finalize agreements with specialized distribution agents in early December, facilitating global distribution to customers in supported jurisdictions. Detailed instructions will be provided on establishing approved accounts through the existing customer portal.
What Customers Must Know
By the end of December, FTX will announce the effective date for distributions, contingent upon a Court Order approving the Disputed Claims Reserve Amount. The expectation is for the Plan to take effect in early January 2025. The first distribution will occur within 60 days to holders of allowed claims in the Plan’s Convenience Classes.
To qualify, customers must establish an approved account with a distribution agent, complete Know Your Customer (KYC) verification, and submit required tax forms before the distribution record date. Claims traders should note provisions regarding trades made within 45 days prior to the distribution record date, which may affect distribution eligibility.
FTT Price Reacts To Distribution Announcement
FTX's native token, FTT, is currently trading at $2.36, reflecting a nearly 10% increase in the past 24 hours. Over two weeks, FTT has gained around 40%, aligning with broader market trends following President-elect Donald Trump's victory on November 5.
Data from CoinGecko indicates a significant rise in trading volume over the past 48 hours, up by 38%, resulting in over $135 million traded. However, FTT's current price remains over 97% below its all-time high of $84, reached in September 2021.
Featured image from DALL-E, chart from TradingView.com