FTX Trading Ltd. and its affiliated debtors have announced the effectiveness of their Chapter 11 Reorganization Plan, scheduled for January 3, 2025. This development sets the stage for the first distributions to be made to holders of permitted claims within the Plan’s Convenience Classes, expected within 60 days after the effective date.
The announcement marks an important milestone for the company, which is in bankruptcy proceedings. John J. Ray III, CEO of FTX Debtors, highlighted the team’s diligent efforts in recovering billions of dollars leading to this moment. Ray emphasized the importance of clients completing the necessary steps to ensure they receive their benefits promptly.
To facilitate the distribution process to both private and institutional customers and other creditors, FTX collaborates with two companies. BitGo and Kraken, who will assist in the distribution of chargebacks in supported jurisdictions in accordance with the Plan.
The initial benefit of the Plan is limited to the Convenience classes, with further announcements regarding registration and payment dates for other types of claims will be made. The news is based on a press release from FTX, which outlines the current status and future steps in the company’s reorganization process.
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