Grass (grass) 
FTX Bankruptcy Distributions to Begin in January 2025
Users affected by FTX’s 2022 crash will start receiving bankruptcy distributions in January 2025. The FTX estate has confirmed that its bankruptcy disbursement plan will become effective on January 3, 2025, following court approval by U.S. District Judge John Dorsey in October. This development marks a significant milestone in the crypto exchange’s efforts to compensate its users.
Payment Options and Distribution Partners
According to Sunil Kavuri, a spokesperson for FTX’s largest creditor group, users will have the option to receive repayments in stablecoins. Kraken and BitGo have been identified as the confirmed distribution partners, citing their payment capabilities. A third distribution partner is expected to be announced soon.
FTX has uploaded the details of its distribution partners to the FTX Claims Portal. This move allows users to access information about the repayment process and options for receiving their distributions.
Bankruptcy Plan and Creditor Approval
The plan, approved by Judge Dorsey in Delaware, allows 98% of creditors to receive 118% of their claim value. This decision was made after 94% of creditors with claims against the crypto exchange voted “Yes” to the plan. This group comprises nearly $7 billion in claims, according to the reorganization plan.
For the past two years, our team of professionals have meticulously and efficiently worked to recover billions of dollars to reach this point. The Plan becoming effective in January 2025 and the start of distributions are reflections of the outstanding success of the recovery efforts.
John J. Ray III, FTX CEO, commended his team for recovering about $16 billion in assets and cash for FTX creditors. The company’s efforts to reconstruct the remnants of the crypto empire are ongoing.
Tips for Affected Users
Users affected by the FTX crash should:
- Monitor the FTX Claims Portal for updates on the repayment process
- Understand their options for receiving distributions, including stablecoins
- Stay informed about the progress of the bankruptcy plan and any changes to the distribution process
Stay up-to-date with the latest news on cryptocurrency and finance by visiting Global Crypto News.
