The post FTX Announces Effective Date For Chapter 11 Reorganization Plan: January 3, 2025 appeared on BitcoinEthereumNews.com.

After years of uncertainty, the defunct cryptocurrency exchange FTX, previously led by convicted founder Sam Bankman-Fried, has announced the effective date for its Chapter 11 reorganization plan aimed at distributing funds to affected customers. Initial Distribution Date Set On Monday, FTX Trading Ltd. and its affiliated debtors revealed that their court-approved Chapter 11 Plan of Reorganization will take effect on January 3, 2025. This date has also been designated as the initial distribution record date for holders of allowed claims within the plan’s Convenience Classes.  The initial distribution is expected to occur within 60 days of this effective date, although participation will be subject to know-your-customer (KYC) and other distribution requirements.  Notably, the initial distribution will be limited to the plan’s Convenience Classes, with separate record and payment dates for other classes of claims to be announced in due course. John J. Ray III, the Chief Executive Officer of the FTX Debtors, expressed optimism about the progress made over the past two years. He stated:  Our team of professionals has 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 we encourage customers to complete the necessary steps to begin receiving distributions in a timely manner. BitGo And Kraken To Assist FTX In Distributing Recoveries To facilitate the distribution process, FTX announced it has entered into agreements with two major crypto companies: BitGo and Kraken.  BitGo, a globally regulated custodian, has been providing institutional-grade trading and settlement services since 2013, while Kraken, a US-based cryptocurrency exchange founded in 2011, offers spot trading and regulated derivatives across up…

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Filed under: News - @ December 17, 2024 8:19 am