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FTX has announced BitGo and Kraken as distribution partners for its bankruptcy payouts.
The exchange's Court-approved Chapter 11 Plan of Reorganization will take effect on January 3, 2025, marking the initial distribution record date for claim holders, who will receive their first distributions within 60 days.
The initial distribution will be subject to compliance with know-your-customer (KYC) and other distribution requirements. To qualify for the initial distribution, customers and creditors must log into the FTX Debtors’ Customer Portal, complete KYC verification, submit tax forms, and onboard with either BitGo or Kraken.
"For the past two years, our team of professionals have meticulously and efficiently worked to recover billions of dollars to reach this point," John J. Ray III, CEO of the FTX debtor said.
"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 encourage customers to complete the necessary steps to begin receiving distributions in a timely manner."
Distributions for transferred claims will only be made to holders registered by January 3, 2025, after the 21-day notice period for objections has lapsed.
The FTX crash resulted in an estimated loss of $8 billion to $10 billion in customer funds, which were allegedly misused by FTX and its sister company, Alameda Research.
Last month, former FTX coding chief Gary Wang was revealed to be building tools to help the US government combat fraud in the crypto and stock markets.
Wang admitted to altering code at Sam Bankman-Fried’s request in 2019, enabling Alameda Research, FTX's affiliated hedge fund, to access special privileges on FTX.
Blockhead
Meanwhile, Apple Studios and A24 are joining forces to bring Michael Lewis’s bestseller Going Infinite: The Rise and Fall of a New Tycoon to the big screen, diving into the meteoric rise and crash of SBF and FTX.
Blockhead
