FTX Provides Details On $16 Billion Distribution Timeline For Customers And Creditors
Nearly the long-awaited solution $16 billion in funding Debt owed to users and customers of defunct cryptocurrency exchange FTX is on the horizon, as the asset managing the recovery process has outlined next steps and a distribution timeline.
FTX is about to complete its Chapter 11 plan
on Thursday announcementFTX confirmed that it is close to completing the final prerequisites required for a court-approved Chapter 11 reorganization plan to become effective, marking a major milestone in initiating distributions to creditors and customers.
FTX Debtors CEO and Chief Restructuring Officer John J. Ray III expressed optimism about the upcoming distribution, saying they will begin distributing proceeds in “early 2025.”
Ray emphasized that the timeline reflects the hard work of the team representing FTX’s creditors and clients, who have reportedly Restored “Billions of dollars to date.” He assured stakeholders that the team is committed to maximizing recycling rates and is actively working to finalize arrangements with distribution agents to expedite the return of funds.
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FTX provided an update on the expected timeline for these offerings. In early December, the estate is expected to finalize an agreement with professionals Distribution agent Its mission is to facilitate the global distribution of recycling to customers in supported jurisdictions.
At that time, FTX will provide affected customers with detailed instructions on how to establish approved accounts with these agents through the existing customer portal.
What customers must know
FTX plans to announce the exact effective date of the distribution by the end of December, subject to a court order approving the amount of the disputed claims reserve, a necessary step outlined in the confirmation order. The plan is currently expected to come into effect in early January 2025.
After this, the first allocation will be made holder Claims allowed within the plan’s convenience level within 60 days. Importantly, the allocation record date will coincide with the effective date, meaning clients need to be prepared to act quickly.
In order for a client to be eligible for an initial allocation, they must establish an approved account with the allocation agent and complete Know Your Customer (KYC) verification and submit required tax forms prior to the allocation record date.
In addition, claims traders should be aware of the specific provisions of the scheme regarding: trade The allocation is made within 45 days prior to the record date.
Claims traded during this period may not be reflected on the register of claims at the close of business on the allocation record date, which may result in allocations being made to the original claim holder rather than the current trader.
FTT price reaction to allocation announcement
As of this writing, FTX’s native token, FTT, is trading at $2.36, up nearly 10% in the past 24 hours.
The coin has posted impressive gains over a longer period of time, rising around 40% in the past 14 days and 18% in the past 30 days, with President-elect Donald Trump in November The broader market rose unanimously following the 5-day win.
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data CoinGecko further showed that FTT’s trading volume has increased significantly in the past 48 hours, surging 38%, with more than $135 million traded during this period.
However, it is worth noting that FTT’s current price is still well below the all-time high of $84 reached during the bull market in September 2021, and is down more than 97% from the peak.
Featured images from DALL-E, charts from TradingView.com
