• FTX’s reorganization plan starts on January 3, 2025 with the initial claim distributions.
• Creditors must complete KYC, tax forms, and choose a provider by January 20, 2025.
• Be cautious of scams and use only official FTX channels for updates.

The FTX Debtors’ plan of reorganization is officially in effect as of January 3, 2025. This marks the start of the initial distribution of allowed claims. However, FTX urges creditors in the Plan’s Convenience Classes to complete key steps to ensure they receive their distribution.

To be eligible to receive a distribution, customers and other creditors must complete the pre-distribution conditions, including selecting a distribution agent on the FTX Debtors’ Customer Portal page: https://t.co/DkYi2hEj1g. For more information, visit: https://t.co/OnAL0Fu158

— FTX (@FTX_Official) January 3, 2025

Pre-Distribution Steps for Creditors

To qualify for a distribution, creditors must complete the pre-distribution steps through the FTX Customer Portal. These steps include fulfilling Know Your Customer (KYC) requirements, submitting tax forms, and selecting a distribution service provider.

The email address a user registered with on the FTX portal must match the one the chosen distribution provider uses. Once you complete onboarding with a provider, you cannot change this selection, so choose wisely.

Choosing Your Distribution Service Provider

Currently, FTX customers can choose between two providers: BitGo and Kraken. However, options are jurisdiction-specific. For U.S. residents, BitGo is unavailable in New York, and Kraken is unavailable in New York, Washington, and Maine.

Read also: FTX Chapter 11: BitGo, Kraken to Handle January 2025 Distributions

FTX has assured that they will introduce additional distribution providers over time for those under certain restrictions. They will share updates through the Customer Portal and via email. Once a customer selects a provider, their platform will begin onboarding.

Distribution Deadlines and Scam Warnings

In addition, to be eligible for the distribution, creditors must complete all pre-distribution steps by January 20, 2025. If you miss this deadline, you will not receive funds in the initial round of distributions.

Read also: FTX Repayment Plan Fact Check: Addressing Misinformation

You can still be eligible for future distributions. However, if you fail to complete the requirements within six months, you could forfeit your distribution rights.

Stay Alert: Beware of Scams

Finally, as FTX moves forward with these distributions, they warn customers to stay alert against phishing attempts and scam emails.

They noted that fraudsters may try to trick users with fake communications that appear to be official messages from the FTX Debtors. FTX advised creditors to rely exclusively on the FTX Customer Portal and official communication channels for any necessary updates or actions.