FTX to Initiate Initial Distributions for Convenience Class Creditors on February 18, 2025

FTX Announces Initial Distribution Date for Creditors

FTX Trading Ltd., operating under the name FTX.com, has revealed a pivotal point in its recovery process: the commencement of initial distributions scheduled for February 18, 2025. This announcement was made in alignment with the company's Chapter 11 Plan, aiming to restore financial stability after the disruptions experienced.

The first distribution phase focuses specifically on holders of allowed claims categorized under the Convenience Classes within the restructuring plan. To be eligible for this initial distribution, creditors must fulfill prerequisites, including completing account verification and submitting necessary documentation. Following the distribution date, these eligible claimants can anticipate receiving their allocations within a swift timeframe of 1 to 3 business days.

To facilitate this distribution, FTX has successfully engaged the services of prominent distribution service providers, BitGo and Kraken. Their role is crucial in effectively disseminating the recoveries to both retail and institutional clients as well as any other creditors that fall under supported jurisdictions. According to John J. Ray III, the Plan Administrator of the FTX Recovery Trust, initiating these distributions marks a significant achievement in the ongoing recovery efforts, which have been meticulously coordinated over the past 28 months.

Ray emphasized, “This accomplishment reflects the hard work and collaboration of our professional team. We remain committed to executing these distributions according to our outlined Plan while continuously pursuing recoveries of outstanding assets.”

Eligible creditors who wish to receive future distributions are reminded to log in to the FTX Customer Portal. They must ensure completion of the Know Your Customer (KYC) verification process, as well as the submission of all required tax forms. Moreover, onboarding with either BitGo or Kraken is necessary, and FTX will provide guidance for these processes through their customer portal.

Furthermore, the distribution of claims that have been transferred will only go to the proper holders whose claims have been duly processed and recognized on the official claims register maintained by the Notice and Claims Agent. This requires that the 21-day notice duration lapses without objections submitted.

In light of these developments, FTX has issued a warning to all creditors to remain vigilant concerning potential phishing attempts. Scammers may impersonate FTX through emails or alternate sites that mimic the official FTX Customer Portal. As a precaution, FTX reassures clients that they will never request personal information like wallet connections.

For additional details on claims and distributions, creditors can find comprehensive resources available through the support channels outlined by FTX, including U.S. Bankruptcy Court filing documents related to the restructuring efforts.

It’s noteworthy that FTX Digital Markets Ltd. will separately communicate distribution information specifically for those customers who opted to have their claims managed by FTX DM.

As FTX navigates these recovery efforts, it’s clear that this milestone marks just the beginning of a longer journey towards financial restitution for all stakeholders involved. The forthcoming distributions signal a major step in restoring confidence in FTX as it continues to manage its recovery plan with transparency and diligence.