FTX Partners With Bitgo and Kraken for Jan. 3 Creditor Payment Distribution

FTX Partners With Bitgo and Kraken for Jan. 3 Creditor Payment Distribution

FTX Trading Ltd. and its debtors have officially locked in January 3, 2025, as the start date for creditor payments under their court-approved Chapter 11 Reorganization Plan. This marks a significant step in FTX’s mission to return funds to claimants after its headline-grabbing collapse.

Key Details of the Payout Plan

According to the announcement:

• Debut Distribution Date: January 3, 2025, will act as the key record date for creditor payments.
• Claimants: Those in specific claim brackets will see their first payments within 60 days of the plan’s effective date.

To ensure a smooth distribution process, FTX has partnered with:

1. Bitgo: A regulated crypto custodian known for its security and reliability.
2. Kraken: A leading U.S.-based crypto exchange with global operations.

These partners will facilitate payouts to both retail and institutional creditors across approved jurisdictions.

Steps for Creditors to Prepare

Eligible claimants need to complete the following steps through the FTX Debtors’ customer claims portal:

1. KYC Verification: Submit identity verification documents.
2. Tax Documentation: Upload required tax information.
3. Registration: Sign up with either Bitgo or Kraken for smooth fund transfers.

⚠️ Important Reminder:

• All creditor details must be up-to-date by January 3, 2025.
• Claims that have changed ownership will be processed according to the official claims list on the record date.
• FTX has issued a phishing scam warning, urging users to only trust official communications and portals for updates.

A Pivotal Recovery Milestone

FTX’s CEO, John J. Ray III, celebrated this milestone, calling it a turning point in the company’s recovery journey:

“The plan becoming effective in January 2025 and the start of distributions are reflections of the outstanding success of the recovery efforts.”

After nearly two years of reclaiming assets, this creditor distribution highlights FTX’s progress in addressing its monumental bankruptcy—one of the largest failures in cryptocurrency history.

Looking Ahead

As the distribution plan unfolds, FTX continues working with additional partners as needed to ensure the recovery process remains seamless for all stakeholders. For creditors, this milestone signals hope for financial restitution and a long-awaited resolution to the FTX saga.