FTX to Distribute $16 Billion to Creditors via BitGo and Kraken, Initial Distribution Expected Within 60 Days of January 3, 2025

Dec 16, 2024, 05:52 PM

FTX has announced that its Chapter 11 plan of reorganization will become effective on January 3, 2025. The company will begin distributing $16 billion to creditors within 60 days of this effective date. The distributions will be handled through BitGo and Kraken, which have been selected as official distribution partners for the bankruptcy payouts. Creditors with claims worth $50,000 or less can expect to receive repayments by early March 2025. The claims portal will allow distributions in stablecoins, providing creditors with options for recovery. This announcement marks a significant step in FTX's efforts to repay its creditors after the collapse of the exchange.