FTX's Chapter 11 Plan Set to Take Effect on January 3, 2025

FTX Trading Ltd. and its affiliated debtors announced that their Chapter 11 Reorganization Plans will take effect on January 3, 2025. This development paves the way for the initial distributions to accepted claim holders in the Convenience Classes to occur within 60 days of the effective date.

This announcement marks a significant milestone for the company undergoing bankruptcy proceedings. John J. Ray III, the CEO of FTX Debtors, emphasized that the team's dedicated efforts to recover billions of dollars have enabled them to reach this point. Ray highlighted the importance of completing the necessary steps to ensure that customers receive their distributions on time.

FTX has partnered with two companies to facilitate the distribution process for both individual and institutional customers, as well as other creditors. BitGo and Kraken will assist in the distribution of recoveries in jurisdictions supported by the Plan.

The Initial Distribution of the Plan will be limited to the Convenience Classes, with further announcements regarding registration and payment dates for other claim classes to follow. This news is based on a press release summarizing the current status of FTX's reorganization process and future steps.