The FTX Foundation plans to begin distribution by March 2025.

• FTX plans to begin paying $16 billion to creditors by March 2025.
• Distribution will begin 60 days after the Chapter 11 plan takes effect in January.
• To receive payments, customers must complete KYC verification and submit tax forms.

The FTX Fund, now led by CEO and Chief Restructuring Officer John J. Ray III, announced plans to begin distributing assets to creditors and clients by March 2025.

It follows a two-year period of intense recovery efforts after the cryptocurrency exchange collapse due to corporate mismanagement and fraud rocked the cryptocurrency world.

Ray, who replaced the founder Sam Bankman-Fried filed for Chapter 11 protection at the end of 2022, oversaw the successful recovery of approximately $16 billion in cash and cryptocurrency for the estate.

FTX Distribution Chart

The distribution schedule set out in recent press releasemarks an important milestone in the long process of compensating FTX creditors.

The Company expects its Chapter 11 Plan of Reorganization to become effective in early January 2025, with the first distributions to begin within 60 days thereafter.

The key date in the process will be the date of record of the distribution, which will coincide with the effective date of the plan of reorganization.

To ensure they receive their share, customers must complete Know Your Customer (KYC) verification, submit the required tax forms, and create an approved account with one of FTX’s dedicated distribution agents.

FTX’s restructuring efforts have proven to be a lengthy and complex undertaking, but the company is now moving full steam ahead to distribute the recovered funds.

The process will be assisted by dedicated distribution agents to help facilitate global payments to lenders and customers, Ray said.

As part of these efforts, FTX will finalize arrangements with these agents by early December, providing specific instructions to customers through the existing portal.

While many creditors and clients will get most of their assets back, the journey will not be easy. During the bankruptcy proceedings, Bankman-Fried was also found guilty of fraud. sentenced to 25 years in prisonand before appeals.

Meanwhile, other key figures in the scandal, such as co-founder Gary Wang and former Alameda co-CEO Caroline Ellison, received lighter sentences in exchange for their cooperation.

FTX’s plan to distribute $16 billion signals a long-awaited resolution for many affected by the exchange’s collapse.