FTX Kicks Off Claims Distribution with Reorganization Plan in Full Effect
The post FTX Kicks Off Claims Distribution with Reorganization Plan in Full Effect appeared on BitcoinEthereumNews.com.
FTX has begun the process of distributing funds to creditors under its Chapter 11 Plan of Reorganization. The plan, effective as of January 3, 2025, marks a major step in resolving the fallout from the cryptocurrency exchange’s collapse in November 2022. The initial record date for holders of allowed claims in the Plan’s Convenience Classes was also set for January 3, with further dates for other creditor classes to follow. FTX Initial Distributions to Begin Within 60 Days According to FTX Debtors, the initial payments to the creditors in the Convenience Classes will be made within 60 days from the effective date of the plan. As per the release, distribution claims for these assets must also adhere to specific criteria such as the KYC process and tax filing. Similarly, the holders of allowed claims shall have up to January 20, 2025, to meeting the pre-distribution conditions. These are filing of tax forms, choosing of Distribution Service Provider and performing of sanctions checks. Submissions made after the deadline will not be included in the initial distribution but will be included in subsequent distributions. The FTX Debtors Plan of Reorganization is effective today, January 3, 2025. Today is also the initial distribution record date for holders of allowed claims in the Plan’s Convenience Classes. Separate record and payment dates for other classes of claims will be announced later. — FTX (@FTX_Official) January 3, 2025 FTX has developed a Customer Portal where creditors are taken through a step by step procedure of eight steps with step 8 involving the selection of Distribution Service Provider. At the moment, there are only two providers, Kraken and BitGo, however, both of them have certain jurisdictions. Distribution Service Providers and Payment Options Payouts will be processed by Distribution Service Providers BitGo and Kraken, which will support several…
Filed under: News - @ January 4, 2025 2:14 am