FTX Restructuring Plan Set for January 2025, Payouts to Follow by March

FTX is gearing up to implement its restructuring plan, with the effective date anticipated for early January 2025.

The bankrupt crypto exchange has confirmed that creditor distributions will start by March at the latest, marking a key milestone in its recovery process.

The company recently announced the completion of its Chapter 11 reorganization plan. CEO John J. Ray III stated that initial payouts would occur within 60 days of the plan’s activation. Eligible creditors will need to set up accounts, complete identity verification (KYC), and submit required tax documents to receive their distributions.

As part of the preparations, FTX plans to finalize agreements with specialized distribution agents by early December. These agents will facilitate the global recovery process for eligible customers in supported regions. Clear instructions for account setup with the appointed agents are expected to follow soon after.

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By the end of December, FTX intends to confirm the plan’s effective date, contingent on court approval of the disputed claims reserve amount. Once effective, the first round of distributions will be processed within 60 days. The record date for this initial payout will align with the effective date of the reorganization plan.

Kosta Gushterov