- FTX will begin distributions to customers in January 2025.
- The exchange collapsed in November 2022, with serious consequences for the entire industry.
The FTX debtors will begin making distributions to customers in early January, after the court-approved Chapter 11 plan of reorganization becomes effective on January 3, 2025.
The collapse of the cryptocurrency exchange announced on December 16 that initial distributions under the plan will occur within 60 days of the effective date. Participation will be subject to know-your-customer (KYC) checks and other requirements. FTX will work with digital asset custodian BitGo and cryptocurrency exchange Kraken to distribute assets to both retail and institutional clients.
John J. Ray III, CEO of the FTX debtors, commented:
“Over the past two years, our team of professionals has worked meticulously and efficiently to recover billions of dollars to reach this point. The plan’s effective date in January 2025 and the start of distributions reflect the extraordinary success of these recovery efforts. We are well positioned to begin delivering recovered assets to all customers and creditors, and we encourage customers to complete the necessary steps to receive distributions in a timely manner.”
Mike Belshe, CEO of BitGo, also commented on the plan and BitGo’s role.
“BitGo is proud to support FTX,” he said. “With our long-standing reputation as a secure choice in the industry, we work hard to provide institutional-grade service for retail and institutional customers, giving users the peace of mind they need to manage and grow their assets securely.”
FTX collapsed in November 2022, and five senior executives have since been jailed or convicted, including former CEO Sam Bankman-Fried.
Following news of the planned distributions, the FTT token rose about 7%.