FTX Begins Distributing Funds to Claimants in Bankruptcy Reorganization

FTX, the cryptocurrency exchange that filed for bankruptcy in November 2022, has begun distributing funds to approved claimants as part of its Chapter 11 Reorganization Plan. The initial disbursement started on February 19th, with customers expected to receive their reimbursements within 1 to 3 business days.

The record date for future distributions is set for April 11, 2025, which applies to holders of both Class 5 and Class 6 claims under the FTX Chapter 11 Plan's criteria. For those claims categorized as Convenience Claims that have received approval post the initial record date, the same April date applies for their next potential disbursement. The subsequent round of distributions is projected to initiate on May 30, 2025.

This structured approach aims to streamline the recovery process for impacted customers while adhering to regulatory requirements. The distribution process is expected to continue over the coming months, with future disbursement dates subject to change based on the ongoing bankruptcy proceedings.