After years of uncertainty, defunct cryptocurrency exchange FTX, formerly led by convicted founder Sam Bankman-Fried, has announced the effective date for its Chapter 11 reorganization plan aimed at distributing funds. affected customers.
First Distribution Date Set
On Monday, FTX Trading Ltd. and associated creditors it was revealed that their court-approved Chapter 11 reorganization plan will become effective on January 3, 2025. This date has also been designated as the first record date for the distribution of allowed claimants within the plan’s Priority Classes.
The first distribution is expected to happen within 60 days of this first day, although participation will be subject to know-your-customer (KYC) and so on. distribution requirements.
Notably, the initial distribution will be limited to plan classes, with separate record and payment dates for other classes of claims to be announced later.
John J. Ray III, Chief Credit Officer of FTX, expressed optimism about the progress made over the past two years. He said:
Our team of experts has worked diligently and efficiently to get billions of dollars to get to this point. The plan to come into effect in January 2025 and the start of distribution are indications of the remarkable success of the restoration efforts. We are in a good position to begin distributing the recovery to all customers and creditors, and we encourage customers to complete the necessary steps to begin receiving timely distributions.
BitGo and Kraken Assist FTX in Distribution Discovery
To facilitate the distribution process, FTX announced that it has entered into agreements with two major crypto companies: BitGo and Kraken.
BitGo, a globally regulated custodian, has been providing institutional-level trading services since 2013, while Kraken, a US cryptocurrency exchange founded in 2011, provides trading and regulation. derivatives in up to 190 countries.
This relationship aims to ensure that the proceeds are effectively disseminated to both retail and institutional customers affected by the corporate collapse, as well as other creditors in the supported areas, in accordance with the restructuring plan.
For claims submitted, distribution will only be made to the transferee of a permitted claim that has been processed and recorded in the official register of claims maintained by the Notice and Claims Agent as of the record date of January 3, 2025. This is subject to a 21-day notice period expiring without objection.
At the time of writing, FTT, is the traditional token of FTXhas had a major impact on recent, broad-based issues uptrend on the market in the last 24 hours.
FTT is currently trading at $3, coming off a consolidation phase that lasted from April to September of this year, when it fluctuated between $1.30 and $1.50. Currently, the token has recorded gains of 23% in the past two weeks and a staggering 52% in the past month.
Featured image from DALL-E, chart from TradingView.com
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