FTX Estate to Distribute $16B to Creditors and Customers by March 2025

The timeline for distributions, outlined in a recent press release, marks a significant milestone in the lengthy process of compensating FTX's creditors.

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FTX to Begin Distributing Assets to Creditors by March 2025

The FTX estate, led by CEO and Chief Restructuring Officer John J. Ray III, has announced plans to begin distributing assets to creditors and customers by March 2025.

This comes after a two-year period of recovery efforts following the cryptocurrency exchange’s collapse due to corporate mismanagement and fraud.

Ray, who took over after founder Sam Bankman-Fried filed for Chapter 11 protection in late 2022, has overseen the successful recovery of around $16 billion in cash and cryptocurrencies for the estate.

FTX distribution timeline As per a recent press release, the timeline for distributions marks a significant stage in the lengthy process of compensating FTX’s creditors.

The company anticipates its Chapter 11 Plan of Reorganization to take effect in early January 2025, with the first distributions to commence within 60 days.

A crucial date in the process is the distribution record date, which will coincide with the effective date of the reorganization plan.

To ensure they receive their share, customers must complete Know Your Customer (KYC) verification, submit required tax forms and establish an approved account with one of FTX’s specialized distribution agents.

FTX's restructuring efforts have been a lengthy and complex undertaking, but the company is now moving full steam ahead to distribute the recovered funds.

According to Ray, the process will be aided by specialized distribution agents, who will help facilitate global payments to creditors and customers.

As part of the effort, FTX will finalize arrangements with these agents by early December, with specific instructions provided to customers through the existing portal.

While many creditors and customers are set to receive the majority of their assets back, the journey has been far from straightforward. The bankruptcy proceedings also saw Bankman-Fried convicted of fraud, sentenced to 25 years in prison and facing appeals.

Meanwhile, other key figures in the scandal, such as co-founder Gary Wang and ex-Alameda co-CEO Caroline Ellison, received lighter sentences in exchange for their cooperation.

The FTX estate's plan to distribute $16 billion signals a long-awaited resolution for many who were affected by the exchange's collapse.