As a seasoned crypto investor with a few battle scars from the volatile cryptocurrency market, I can’t help but feel a sense of cautious optimism upon hearing the news about FTX’s Chapter 11 reorganization and the anticipated Initial Distribution. Having been through several market downturns and exchange hiccups myself, I understand that this process might take longer than expected, but it’s heartening to see John J. Ray III’s commitment to recovering funds for customers and creditors.
Today, the closed cryptocurrency exchange FTX and its related debtors (referred to as FTX debtors) declared that their Chapter 11 restructuring plan, which has been court-approved, will start on January 3, 2025. This date is also marked as the cutoff for identifying creditors eligible for the initial round of payments, called the Initial Distribution.
The first round of distributions should happen approximately within two months after the effective date, primarily focusing on groups categorized as “Convenience Classes.” Further details regarding distribution schedules for other creditor groups will be shared later on.
In simpler terms, the CEO of FTX, John J. Ray III, highlighted the hard work his team has put in during the last two years to retrieve substantial amounts of money for their clients and debtors. He advised anyone expecting payment to get ready for the forthcoming payouts. In other words, John J. is urging people to be prepared for the upcoming distributions.
Over the last two years, our dedicated team has diligently and productively been working towards the recovery of billions of dollars. This hard work has led us to where we are now, with our plan set to take effect in January 2025 and the commencement of distributions. This is a testament to the remarkable success of our recovery efforts. We’re all set to initiate the distribution of recovered funds to all customers and creditors, so we urge you to complete any necessary steps promptly to start receiving your distributions as soon as possible.
FTX Partners with BitGo and Kraken to Streamline Creditor Payments
It came to light that FTX has formed partnerships with two other companies to facilitate the distribution for both individual and institutional consumers, as well as specific creditors in certain regions. These partners are BitGo, a company offering regulated trading and settlement services since 2013, and Kraken, a significant U.S. cryptocurrency exchange that has been providing spot trading and regulated derivatives across 190 countries since its 2011 debut. These partnerships are subject to the legal process and relevant regulations.
To get their payments on the Initial Distribution date, creditors who are eligible should follow some essential procedures. These steps involve logging into the FTX Customer Portal, verifying your identity through Know Your Customer (KYC), submitting necessary tax documents, and completing the onboarding process with either BitGo or Kraken. You’ll find comprehensive instructions for this onboarding process within the FTX Customer Portal itself.
Additionally, FTX cautions users to stay alert for potential phishing emails that might seem like they’re from the FTX Debtors, along with fraudulent websites. It’s important to remember that FTX will never request confidential data or ask users to link their wallets directly. In essence, FTX is advising: “Please be on guard against suspicious emails and sites claiming to represent us, as we will never ask for sensitive information or direct connections to your wallets.
Kindly stay vigilant against phishing emails supposedly sent by FTX Debtors, mimicking their official platform. Be cautious of fraudulent sites resembling the FTX Debtors’ Customer Portal. Remember, the FTX Debtors will never request you to link your wallets.
FTX Digital Markets Ltd. is about to outline a distinct procedure for clients opting to let the firm manage their claim submissions. Consequently, this reorganization strategy signifies advancement towards the return of funds to both customers and creditors.
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2024-12-16 23:33