tl;dr
On January 3, 2025, FTX's reorganization plan begins with the initial distribution of claims. Creditors must complete KYC, tax forms, and choose a provider by January 20, 2025. They should be cautious of scams and use only official FTX channels for updates. Failure to complete pre-distribution steps...
FTX's reorganization plan begins on January 3, 2025 with initial claim distributions. Creditors must complete KYC, tax forms, and choose a provider by January 20, 2025. Be cautious of scams and use only official FTX channels for updates.
The FTX Debtors’ plan of reorganization is officially in effect as of January 3, 2025. This marks the start of the initial distribution of allowed claims. However, FTX urges creditors in the Plan’s Convenience Classes to complete key steps to ensure they receive their distribution.
To qualify for a distribution, creditors must complete the pre-distribution steps through the FTX Customer Portal. These steps include fulfilling Know Your Customer (KYC) requirements, submitting tax forms, and selecting a distribution service provider.
Currently, FTX customers can choose between two providers: BitGo and Kraken. However, options are jurisdiction-specific. FTX has assured that they will introduce additional distribution providers over time for those under certain restrictions. They will share updates through the Customer Portal and via email.
In addition, to be eligible for the distribution, creditors must complete all pre-distribution steps by January 20, 2025. If you miss this deadline, you will not receive funds in the initial round of distributions. You can still be eligible for future distributions. However, if you fail to complete the requirements within six months, you could forfeit your distribution rights.
Finally, as FTX moves forward with these distributions, they warn customers to stay alert against phishing attempts and scam emails. FTX advised creditors to rely exclusively on the FTX Customer Portal and official communication channels for any necessary updates or actions.