FTX to begin distributions to creditors, customers early next year

FTX said Thursday it expects to begin distributions to its creditors and customers as the defunct cryptocurrency exchange nears the end of the final steps of its court-approved chapter 11 reorganization plan. According to FTX, debtors early next month expect to finalize their arrangements with the specialized distribution agents that will assist in distributing funds to customers worldwide. By the end of December, FTX said, debtors expect to disclose the exact effective date, following the entry of a court order approving the disputed claims reserve amount. The debtors expect the plan to take effect in early January, and pursuant to the confirmation order, the first distributions will be made to holders of allowed claims in the plan’s conveniences classes within 60 days after that, the firm said. It added that the record date for the initial distribution will be the same as the effective date. More on FTX FTX wins court approval to repay customers harmed by crypto firm's demise - report Caroline Ellison sentenced to 24 months in prison over FTX collapse FTX auditor Prager Metis settles SEC negligence charge Sam Bankman-Fried appeals fraud, conspiracy conviction