FTX Chapter 11 Plan To Take Effect in January 2025, Kraken and BitGo To Assist With Recoveries
In the latest article announcementFTX and its related debtors disclosed that its court-approved Chapter 11 reorganization plan will take effect on January 3, 2025.
The first distribution will take place within 60 days
The first distribution is expected to be made within 60 days of the effective date. Initial allocations are limited to the program’s convenience cabins. Separate recording and payment dates for other categories of claims will be announced in due course.
John J. Ray III, CEO of FTX Debtors, noted: “Over the past two years, our team of professionals worked diligently and efficiently to recover billions of dollars to achieve this goal. this goal.”
“The plan comes into effect and begins distribution in January 2025, reflecting the great success of the recovery effort. We are ready to begin distributing recoveries to all customers and creditors and encourage customers to complete the necessary steps to begin in a timely manner Receive assignments,” he added.
Kraken and BitGo assist with recovery
FTX also revealed that it has entered into agreements with two firms to assist in the distribution of recoveries to retail and institutional clients and other creditors in supported jurisdictions. Cryptocurrency exchanges Kraken and BitGo will facilitate recovery from eligible creditors.
Customers and creditors with allowed claims will receive cash or stablecoin payments based on individual preferences and jurisdictional guidelines.
It is worth noting that Kraken has previously assisted in similar cases, including creditor payments related to the Mt. Gox bankruptcy. “We are proud to leverage our experience in asset recovery and distribution to support this distribution process,” Kraken said.
BitGo emphasizes its commitment to handling asset security during the repayment process. CEO Mike Belshe noted that it has protected billions of dollars in crypto assets for institutions, prioritizing transparency and trust, and is proud to support FTX.
