FTX Unveils Payout Plan for Creditors Amid Bankruptcy Proceedings

FTX has made significant progress in its bankruptcy process, with the company announcing that it will begin paying creditors on July 31. The record date for eligibility is set for June 16, marking a crucial milestone in the reorganization of the exchange.

The payout schedule and eligibility requirements have been outlined by FTX, with eligible recipients including holders of approved customer claims and equity holders. Payments to preferred stock holders will follow the same timeline, but creditors must complete several administrative steps before receiving funds.

These steps include passing Know Your Customer (KYC) verification, submitting required tax documentation, and registering an account with one of three designated distribution partners - BitGo, Kraken, or Payoneer. For holders of approved NFT customer claims, the distribution process opens earlier on June 30.

In a parallel development, FTX has submitted an amended plan to the bankruptcy court proposing to reduce its disputed claims reserve by approximately $600 million. This reduction signals growing confidence in FTX's ability to resolve outstanding disputes and streamline its asset recovery process.