FTX Names BitGo and Kraken as Bankruptcy Payout Partners

FTX has officially announced BitGo and Kraken as its distribution partners for bankruptcy payouts. The now Court-approved Chapter 11 Plan of Reorganization will take effect on January 3, 2025, marking the initial distribution record date for claim holders.

FTX customers and creditors will receive their first payouts within 60 days following this date. However, distributions will require compliance with know-your-customer (KYC) verification and other mandatory steps.

Steps to Qualify for Payouts

To ensure timely distribution, claim holders must:

1. Log into the FTX Debtors’ Customer Portal.
2. Complete KYC verification.
3. Submit the necessary tax forms.
4. Onboard with one of the designated distribution partners: BitGo or Kraken.

FTX CEO John J. Ray III emphasized the importance of this milestone:

“For the past two years, our team of professionals have meticulously and efficiently worked to recover billions of dollars to reach this point… We are well positioned to begin executing the distribution of recoveries back to all customers and creditors.”

Key Distribution Details

• Record Date: January 3, 2025
• Distribution Timeline: First payouts within 60 days.
• Transferred Claims: Payments will only be made to holders registered by January 3, 2025, following a 21-day objection period.

The total estimated loss from the FTX collapse ranges between $8 billion to $10 billion in customer funds, allegedly misused by FTX and its affiliated firm Alameda Research.

Recovery Efforts and Recent Developments

FTX’s recovery efforts have involved significant revelations. Last month, Gary Wang, FTX’s former chief coding officer, was reportedly assisting the U.S. government in developing tools to combat fraud in crypto and traditional markets. Wang previously admitted to altering FTX’s code in 2019 at the direction of Sam Bankman-Fried (SBF), granting Alameda Research unfair trading privileges.

FTX’s Story Heads to Hollywood

Meanwhile, the FTX saga is set to hit the big screen. Apple Studios and A24 are adapting Michael Lewis’s bestseller, “Going Infinite: The Rise and Fall of a New Tycoon”, into a major motion picture. The film will chronicle the meteoric rise and dramatic collapse of Sam Bankman-Fried and the FTX empire.

FTX’s decision to partner with BitGo and Kraken marks a critical step in the long-awaited recovery process for customers and creditors. With distributions slated to begin in early 2025, claim holders are urged to complete the required steps promptly. As the story of FTX continues to unfold—both in recovery efforts and through Hollywood adaptations—it remains a pivotal chapter in the history of crypto markets.