FTX’s Court-Approved Chapter 11 Plan Takes Effect on January 3, 2025; a Major Step Forward in the Exchange’s Recovery Efforts

FTX will distribute $12 billion in Q1 2025 through BitGo and Kraken. This development suggests a possible renewed interest in FTT tokens, leading to speculation on its price rise.

FTX’s court-approved Chapter 11 plan will become effective on January 3, 2025, marking a significant step forward in the bankrupt cryptocurrency exchange’s efforts to return funds to customers and creditors.

As part of the plan, FTX will distribute $12 billion in Q1 2025 to creditors through BitGo and Kraken. This development could lead to a renewed interest in FTT tokens, with some speculating on a potential price rise.

The FTX Debtors announced on Monday that the effective date for its Plan of Reorganization has been set for January 3, 2025, which is also the initial distribution record date for holders of allowed claims in the Plan’s Convenience Classes.

FTX to Prioritize Customer Payouts via BitGo and Kraken

The press release states that customers and creditors with claims under the plan’s convenience classes will be the first to receive their initial payouts, which will be distributed within 60 days of the effective date through BitGo and Kraken exchanges in the form of stablecoins. This move has fueled speculation regarding a possible price jump for FTT tokens.

John J. Ray III, the CEO of FTX Debtors, highlighted the massive effort behind this recovery process. Over the past two years, the FTX team has recovered billions of dollars for customers and creditors. With the plan going live on January 3, 2025, the main focus shifts to timely distributions. Claim holders in the convenience classes must meet know-your-customer (KYC) requirements to receive payouts.

The bankrupt exchange is working with BitGo, a regulated digital custodian, and Kraken, a leading cryptocurrency exchange, to speed up stablecoin distributions to both retail and institutional customers.

Is This the Bottom for FTX Token (FTT)?

This announcement has brought renewed enthusiasm within the crypto community, especially regarding FTT tokens, due to their recent price action in the bear market.

As can be seen on the attached price chart, FTT appears to be forming a double-bottom pattern, a bullish signal that could lead to a massive price surge of over 550%. If the pattern holds, FTT could even reach $20 again. As further details regarding FTX’s recovery emerge in early 2025, we can expect to see a potential surge in FTT price.

The information on this page is provided for educational, informational and general knowledge purposes only and does not constitute professional legal or financial advice. Any actions taken by you based on the information on this website are strictly at your own risk. Use the information provided responsibly.