FTX Announces Next Distribution Date and Updates on Claims Reserve Reduction
FTX Sets Next Distribution Date and Amended Proposed Claims Reserve Reduction
FTX Trading Ltd. and the FTX Recovery Trust recently shared crucial information regarding the expected timeline for their next distribution to creditors. According to their announcement, the record date is set for February 14, 2026, with distributions expected to commence on March 31, 2026. This news comes as part of the ongoing bankruptcy proceedings under Chapter 11, as FTX works towards compensating its creditors and customers.
In conjunction with setting this distribution date, FTX also filed an amended notice to the Bankruptcy Court aimed at reducing the amount reserved for disputed claims by $2.2 billion. Previously set at $4.6 billion, the reserve is now reduced to $2.4 billion. This change is contingent upon approval from the court and aims to free up additional funds for distribution to creditors with allowed claims.
The upcoming distributions will be executed by FTX's selected Distribution Service Providers, which include BitGo, Kraken, and Payoneer. It's important for holders of allowed claims to be aware that they must meet certain pre-distribution criteria to be eligible for the upcoming payments.
Essential Information for Claim Holders
1. Eligibility for Distribution: Only individuals who hold allowed claims and have completed all necessary pre-distribution requirements will receive payments.
2. Verification Process: Customers and creditors are urged to complete their Know Your Customer (KYC) verification and submit the required tax forms through their chosen Distribution Service Provider.
3. Transferred Claims: For those with transferred claims, distributions will be made only to the official transferee listed on the claims register as of the record date, provided the 21-day notice period passes without objections.
4. Scam Awareness: As distributions begin, FTX warns customers about potential phishing scams pretending to be from the FTX Recovery Trust. Users should be cautious and should never be asked to connect wallets or provide sensitive information.
Legal representation for FTX is being handled by Sullivan & Cromwell LLP, with additional support from Alvarez & Marsal North America, LLC and others for financial guidance. Transparency during this tumultuous period has been highlighted, with ongoing updates expected as the situation evolves.
For additional details, FTX encourages customers to visit their official support page at FTX Distributions.
Conclusion
FTX’s proactive approach reflects their commitment to resolving outstanding claims and ensuring that those affected can receive the compensation due to them. As the situation progresses, it is essential for creditors to stay informed and prepared to ensure they meet all necessary requirements ahead of the upcoming distributions.
Topics Financial Services & Investing）
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