FTX Announces Effective Date and Record Date of January 3, 2025 for its Chapter 11 Plan of Reorganization

Summary

In a December 16, 2024 press release, FTX Trading Ltd. and its affiliated debtors announced that their Court-approved Chapter 11 Plan of Reorganization will become effective on January 3, 2025, which is also the initial distribution record date for holders of allowed claims in the Plan's Convenience Classes. The Initial Distribution is expected to occur within 60 days of the Effective Date and is limited to the Convenience Classes, and other classes will get separate dates. FTX says it has entered into agreements with BitGo and Kraken to distribute recoveries to customers and creditors. To be eligible, customers must log in to the Customer Portal, complete Know Your Customer verification, submit tax forms and onboard with BitGo or Kraken before the record date. Chief Executive Officer John J. Ray III says recovery efforts have reached "outstanding success."

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Dec 16, 2024, 12:40 ET

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Initial Distribution to Occur within 60 Days of Effective Date

Enters into Agreements with BitGo and Kraken to Distribute Payments to Customers and Creditors

WILMINGTON, Del. , Dec. 16, 2024 /PRNewswire/ -- FTX Trading Ltd. (d.b.a. FTX.com) ("FTX") and its affiliated debtors (the "FTX Debtors") today announced its Court-approved Chapter 11 Plan of Reorganization (the "Plan") will become effective on January 3, 2025 , which has also been set as the initial distribution record date for holders of allowed claims in the Plan's Convenience Classes (the "Initial Distribution"). The Initial Distribution is expected to occur within 60 days of the Effective Date, with participation subject to know-your-customer and other distribution requirements. The Initial Distribution is limited to the Plan's Convenience Classes. Separate record and payment dates for other classes of claims will be announced in due course.

John J. Ray III , Chief Executive Officer of the FTX Debtors, said: "For the past two years, our team of professionals have meticulously and efficiently worked to recover billions of dollars to reach this point. The Plan becoming effective in January 2025 and the start of distributions are reflections of the outstanding success of the recovery efforts. We are well positioned to begin executing the distribution of recoveries back to all customers and creditors, and encourage customers to complete the necessary steps to begin receiving distributions in a timely manner."

FTX also today announced it has entered into agreements with two companies to assist in distributing recoveries to both retail and institutional customers and other creditors in supported jurisdictions and in accordance with the Plan:

- BitGo, a full-service globally regulated custodian enabling institutional-grade trading, settlement services, and more for retail and institutional clients since 2013; and
- Kraken, founded in 2011, is a leading US-based cryptocurrency exchange that enables spot trading, regulated derivatives, and more available in up to 190 countries.

If additional distribution service providers are onboarded, announcements will be made on the FTX Debtors' Customer Portal and the FTX Debtors' official X.com account ( https://x.com/FTX_Official ).

To be eligible to receive a distribution on the Initial Distribution date, customers and other creditors must complete the following prior to the distribution record date:

- Login to the FTX Debtors' Customer Portal ( https://claims.ftx.com ) (applicable to customers).
- Complete required Know Your Customer ("KYC") verification.
- Submit the required tax forms.
- Onboard with BitGo or Kraken. The FTX Debtors will provide instructions for onboarding with each of the distribution service providers on the existing FTX Debtors' Customer Portal.

For transferred claims, distributions will only be made to the transferee holder of an allowed claim that is processed and reflected on the official register of claims maintained by the Notice and Claims Agent as of the January 3, 2025 record date, where the 21-day notice period has lapsed without objection.

Please remain aware of phishing emails that may look like they are from FTX Debtors and scam sites from channels that may appear to look like the FTX Debtors' Customer Portal ( https://claims.ftx.com ). This is another reminder that the FTX Debtors will never ask you to connect your wallets.

U.S. bankruptcy court filings, including the Plan and other documents related to the Court proceedings, are available at https://cases.ra.kroll.com/FTX/ .

FTX Digital Markets Ltd. ("FTX DM") will soon be separately announcing a distribution process for customers who have elected to have their claims administered by FTX DM.

Advisors

The FTX Debtors are represented by Sullivan & Cromwell LLP as legal counsel and are assisted by Alvarez & Marsal North America , LLC as financial advisor, Perella Weinberg Partners LP as investment banker, Quinn Emanuel Urquhart & Sullivan, LLP as special counsel and Landis Rath & Cobb LLP as Delaware counsel.

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