FTX, the bankrupt cryptocurrency exchange, has announced plans to repay creditors under a reorganization plan set to take effect on January 3, 2025. The company stated that initial creditor distributions will begin within 60 days of the effective date, marking a crucial step in its efforts to resolve claims following its collapse in late 2022.
FTX Plans For Reorganization and Creditor Repayments
FTX has confirmed it has partnered with Kraken and BitGo to manage the distribution of funds to creditors and customers. Both firms have extensive experience in cryptocurrency custody and payment processing. Customers and creditors with allowed claims will receive payments either in cash or stablecoins, depending on individual preferences and jurisdictional guidelines.
Kraken, a U.S.-based cryptocurrency exchange founded in 2011, has previously assisted in similar cases, including creditor payouts related to the Mt. Gox bankruptcy. Kraken said on Monday, “We are proud to support this distribution process, leveraging our experience in asset recovery and distribution.”
BitGo, a cryptocurrency custodian established in 2013, emphasized its commitment to security in handling assets during the repayment process. CEO Mike Belshe stated,
“We have safeguarded billions in crypto assets for institutions, prioritizing transparency and trust, and we are honored to support FTX.”
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