FTX has said it will begin paying its creditors on January 3, 2025, with payments to be made through authorized platforms, extending up to 60 days after the start of its restructuring plan.
FTX, the cryptocurrency exchange platform that collapsed in November 2022, has officially announced that January 3, 2025 will be the start date for repayments to its creditorsThis decision follows a significant update to the refund plan made in November this year, as reported by Bit2Me News.
The news represents a crucial step in the recovery and reorganization process of the company, which has been under the supervision of Chapter 11 of the United States bankruptcy law.
John J. Ray III, CEO of FTX, has said that the company has faced numerous challenges since its bankruptcy, but that it has worked tirelessly to raise its investors' funds and establish a fair and efficient repayment plan. The plan, which has been approved by the Delaware Bankruptcy Court, provides for the repayment of creditors' claims in cash and stablecoins.
Ray assured that FTX’s refund process has been designed to be transparent and secure and that the platform has worked hard to ensure that all details are in place before initiating distributions. This includes verifying claims, coordinating with distribution firms, and preparing the necessary systems to ensure that payments are made in a timely and seamless manner.
FTX creditor repayment plan to be launched soon
This week, the exchange highlighted that, in addition to establishing the plan’s effective date, January 3, 2025 has also been established as “the initial distribution record date for holders of permitted claims in the Plan’s Convenience Classes.”
In this way, according to announced the platform, the initial distribution of refunds could occur within the 60 days after the effective date of the plan, provided that the conditions established for such returns are met. The platform also reported that for other types of claims, in addition to the Convenience Classes contemplated in the plan, separate registration and payment dates will be announced later, due to the time required for their processing. The established period of 60 days allows to ensure that all systems are fully operational and that creditors have completed the necessary requirements to receive their payments.
In the statement, FTX also detailed the steps creditors must follow to be eligible for the initial distribution of funds.
FTX warns of potential phishing attacks
Amidst the intense media interest surrounding FTX, the platform has taken proactive measures to protect its creditors from potential fraud. FTX warns about phishing emails and fraudulent websites that can imitate the Debtors' Client Portal. The company also emphasized that will never ask creditors to connect their digital wallets, which is a clear indication of fraud attempts. Amid this media interest, which can attract bad actors, it is crucial for creditors to remain vigilant and verify the authenticity of any communication received, FTX stressed.
“Please be aware of phishing emails that may appear to be from FTX debtors and fraudulent channel sites that may appear similar to the FTX Debtor Customer Portal (https://claims.ftx.com)”, the platform said. “This is another reminder that FTX debtors will never ask you to connect your wallets.”
Leadership focused on recovery and transparency
Ray, who took over as FTX CEO following the platform's bankruptcy filing, has been a pillar in the company's efforts to return funds to affected users.
In a recent statement, Ray said: “Over the past two years, our team of professionals has worked meticulously and efficiently to recover billions of dollars to get to this point. The Plan’s entry into force in January 2025 and the commencement of distributions are reflections of the outstanding success of the recovery efforts,” adding that FTX is now well positioned to begin executing the distribution of recoveries to all of its customers and creditors.
Ray III has been recognized in the business world for his experience in managing bankruptcy and reorganization processes, so under his leadership, FTX has managed to recover a significant amount of funds, which has allowed it to establish a repayment plan that exceeds initial expectations. Because of this, it seems that creditors can expect a transparent and efficient process, which could return them the funds they lost in the collapse of the platform.
