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News

FTX Bankruptcy Plan Takes Effect With Claim Registrations

January 4, 2025 - Around 2 mins mins to read

Key Points:

  • The FTX Bankruptcy Plan initiated its first claim distributions on January 3, requiring creditors to complete pre-distribution steps by set deadlines.
  • Failure to fulfill requirements within six months can result in forfeited distributions under the FTX Bankruptcy Plan.
FTX Bankruptcy Plan begins with initial claim distributions starting January 3. Eligible creditors must meet pre-distribution requirements to receive payouts.
FTX Bankruptcy Plan Takes Effect With Claim Registrations

Initial Distributions Begin for FTX Bankruptcy Plan

The FTX Bankruptcy Plan officially launched its first round of distributions on January 3, targeting approved claims within the Convenience Classes. To be eligible, creditors need to have satisfied the pre-distribution criteria, which included completing KYC verification and ensuring that their claims were classified as allowed by the initial distribution record date. This milestone marks a critical step in the recovery process for affected claimants.

Eligible creditors are reminded that, to receive distributions promptly, all required steps must be completed, including submitting accurate tax forms and onboarding with an approved distribution service provider. FTX Debtors have emphasized the importance of following the plan’s terms to avoid delay or even the forfeiture of a payment.

Read more: FTX Bankruptcy Plan Continues to Be Objected by Celsius to $444M Claim

Deadline Compliance Vital for FTX Claim Payments

Claimants under the FTX Bankruptcy Plan must meet the January 20 deadline to be eligible for initial payouts. This includes completion of pre-distribution requirements such as electing a distribution agent, submission of tax documents, and passing sanctions screenings. Those who do not comply by that date will suffer the consequence of delaying their payments to subsequent months.

Delays in filing claims will still be accommodated; however, creditors who fail to satisfy such stipulated requirements within six months from the original record date may lose their claims entirely. The FTX Debtors also encourage claimants to be increasingly vigilant of phishing scams and remind them to verify communications through the official FTX portal for their security and accuracy.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Avatar of Liam Zhang

Liam Zhang

I have over eight years of experience in blockchain journalism, contributing to platforms like NeoBlockchain Insights and Binance Academy. My passion lies in simplifying complex crypto concepts and crafting SEO-optimized content that engages a global audience. At Coincu.com, I am proud to continue my journey by creating impactful stories that educate and inspire the crypto community.