- Awaiting FTX creditors have received positive updates.
- The exchange will soon commence repayments.
- Important deadlines to watch out for have been outlined.
Over two years have passed since the downfall of FTX, a turbulent chapter that marked one of the biggest financial implosions in industry history. With a whopping $10 billion hole left to be filled, repayment efforts have dragged out for months, leaving impacted customers in a state of uncertainty.
As the wait continues, recent updates hint that the long-awaited resolution may finally be drawing near.
FTX Payouts on the Horizon
The FTX bankruptcy estate has been on a year-long mission to reimburse the customer funds mismanaged by the exchangeโs former executives, and the ongoing efforts are gaining traction.
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The exchange has announced progress in finalizing the prerequisites for its Court-approved reorganization plan, brightening the roadmap for creditor and customer distributions.
FTX’s updates follow its successful recovery of billions necessary for creditors’ repayments, following a series of wins in some of its boldest litigations. Commenting on the payout plan, CEO and Chief Restructuring Officer John J. Ray III confirmed the progress, asserting the focus on expediting distributions.
โWe are pleased to announce that we will begin distributing proceeds in early 2025. The timeline laid out reflects the experience and continued work of the team of professionals supporting the Debtors, who have already recovered billions of dollars on behalf of FTX's creditors and customers,โ stated the CEO.
The film has now outlined the timeline for the upcoming payouts.
Key Dates for FTX Creditor Distributions
While no specific dates have been provided, FTX has outlined a schedule for creditors to watch out for.
- Early December 2024: The FTX bankruptcy estate expects to finalize all arrangements for distribution by early December 2024, including the selection of distribution agents who will assist in distributing the reimbursements to customers globally. During this period, impacted customers will also receive guidance on setting up accounts on the FTX portal.
- End of December 2024: Creditors can expect more concise details by the last days of the year, as the exchange will confirm the Plan’s effective date following Court approval.
- January 2025: By this time, FTXโs reorganization plan is expected to take effect, officially launching the payout timeline.
The first set of payouts will commence within 60 days of the plan coming into effect, and the firm added that customers and creditors must meet all eligibility requirements before distributions commence.
What FTX Creditors Must Do in Preparation
In order to be eligible for distributions and ensure smooth and timely receipt of funds, customers must:
- Set Up an Approved Account: When required, awaiting creditors must register with a designated Distribution Agent via the FTX customer portal.
- Complete KYC Verification: Following account set-ups, creditors must proceed to fulfill the necessary Know Your Customer (KYC) requirements as mandated by regulatory guidelines.
- Submit Required Tax Documents: Additionally, all necessary tax forms must be provided before the distribution record date.
On the Flipside
- The former CEO and mastermind of the FTX fraud SBF is attempting to get out of jail.
- FTX recently filed a $1.8 billion lawsuit against Binance and its founder, Changpeng Zhao.
Why This Matters
The latest updates by FTX offer a glimmer of hope creditors may soon see light at the end of a long and tumultuous tunnel.
Read more on the recent twists in consequences for the FTX fraudsters:
One FTX Fraudster Isnโt Going to Jail: Hereโs Why
The impressive track record of the Sui blockchain was recently disrupted by an outage, find out more here:
Sui Network Suffers First Major Outage in 2-Hour Blackout
