FTX Token to Start Reorganization Plan Implementing on January 3rd

Bankrupt cryptocurrency exchange FTX has announced that its Chapter 11 reorganization plan will become effective on January 3. From this date, the process of distributing funds to the company’s creditors and customers will commence.

Key Points:

Effective Date: January 3, 2025.

Commencement of Payments: Initial distributions are expected within 60 days of the effective date, prioritizing creditors with claims under $50,000.

Distribution Partners: To ensure secure and efficient fund distribution, FTX is collaborating with cryptocurrency exchange Kraken and custodial firm BitGo.

The reorganization plan, approved by the court earlier this year, aims to return funds to customers and creditors affected by the exchange’s collapse in 2022. The total amount available for distribution is estimated between $14.7 billion and $16.5 billion.