FTX Bankruptcy Plan Takes Effect With Claim Registrations

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.

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.