FTX Trading Ltd and its affiliated debtors have announced that they are nearing the completion of key steps to implement their court-approved Chapter 11 reorganization plan.
Once finalized, the plan will allow the company to distribute up to $16.5 billion in recovered funds to creditors and customers.
In a November 21 press release, John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of FTX Debtors expressed satisfaction with the progress made and stated that distributions are expected to begin in early 2025.
Ray also noted that efforts to maximize recoveries are ongoing and that the company is focused on ensuring a swift distribution process through partnerships with agents.
FTX also outlined updates on its expected distribution timeline. By early December, the failed exchange plans to finalize arrangements with the specialized distribution agents who will facilitate the global recovery process in supported jurisdictions. Customers will then receive instructions for setting up approved accounts with these agents via the existing customer portal.
The bankrupt exchange anticipates announcing the plan’s effective date by the end of December, contingent on a court order approving the disputed claims reserve amount. It also expects initial distributions to creditors in the plan’s convenience classes to occur within 60 days of the effective date.
The reorganization plan, approved by the U.S. Bankruptcy Court for the District of Delaware in October 2024, received overwhelming support from creditors. Under the plan, they stand to recover an average of 119% of the value of claims, with some potentially receiving up to 140% in cash.
The exchange estimates total recoveries to range between $14.7 billion and $16.5 billion, citing assets gotten back from entities such as the U.S. Department of Justice as well as international regulators.
FTX filed for bankruptcy in late 2022, with the company’s downfall marked by high-profile criminal convictions. In November 2023, former CEO Sam Bankman-Fried was convicted on charges including wire fraud and conspiracy and sentenced to nearly 25 years in prison.
In 2024, co-CEO Ryan Salame was sentenced to 7.5 years in prison, while Caroline Ellison, former CEO of Alameda Research, received a two-year prison term. Former executives Nishad Singh and Gary Wang avoided prison entirely.
The post Here’s When FTX Expects to Start Repaying Customers $16.5B appeared first on CryptoPotato.
Once finalized, the plan will allow the company to distribute up to $16.5 billion in recovered funds to creditors and customers.
Distribution Timeline
In a November 21 press release, John J. Ray III, Chief Executive Officer and Chief Restructuring Officer of FTX Debtors expressed satisfaction with the progress made and stated that distributions are expected to begin in early 2025.
Ray also noted that efforts to maximize recoveries are ongoing and that the company is focused on ensuring a swift distribution process through partnerships with agents.
FTX also outlined updates on its expected distribution timeline. By early December, the failed exchange plans to finalize arrangements with the specialized distribution agents who will facilitate the global recovery process in supported jurisdictions. Customers will then receive instructions for setting up approved accounts with these agents via the existing customer portal.
The bankrupt exchange anticipates announcing the plan’s effective date by the end of December, contingent on a court order approving the disputed claims reserve amount. It also expects initial distributions to creditors in the plan’s convenience classes to occur within 60 days of the effective date.
The Reorganization Plan
The reorganization plan, approved by the U.S. Bankruptcy Court for the District of Delaware in October 2024, received overwhelming support from creditors. Under the plan, they stand to recover an average of 119% of the value of claims, with some potentially receiving up to 140% in cash.
The exchange estimates total recoveries to range between $14.7 billion and $16.5 billion, citing assets gotten back from entities such as the U.S. Department of Justice as well as international regulators.
FTX filed for bankruptcy in late 2022, with the company’s downfall marked by high-profile criminal convictions. In November 2023, former CEO Sam Bankman-Fried was convicted on charges including wire fraud and conspiracy and sentenced to nearly 25 years in prison.
In 2024, co-CEO Ryan Salame was sentenced to 7.5 years in prison, while Caroline Ellison, former CEO of Alameda Research, received a two-year prison term. Former executives Nishad Singh and Gary Wang avoided prison entirely.
The post Here’s When FTX Expects to Start Repaying Customers $16.5B appeared first on CryptoPotato.
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