- FTX’s $12 billion recovery plan begins January 3, 2025.
- Stablecoin payouts are facilitated through BitGo and Kraken.
- Initial distributions are expected within 60 days of the effective date.
FTX’s court-approved Chapter 11 plan takes effect on January 3, 2025; a major step forward in the exchange’s recovery efforts. FTX will distribute $12 billion in Q1 2025 through BitGo and Kraken. This development suggests a possible renewed interest in FTT tokens, leading to speculation on its price rise.
FTX to Prioritize Customer Payouts via BitGo and Kraken
According to the press release, customers and creditors holding claims under the plan’s The press release states that customers and creditors with claims under the plan’s convenience classes will be the first to receive their initial payouts. These payouts are expected within 60 days after the effective date. Payments will occur in stablecoins through BitGo and Kraken exchanges. This ensures a smooth recovery of funds. The news has fueled speculation about a possible price jump for FTT tokens.
Read also: What’s Behind FTX’s $2.66M SOL Transfer to Binance? Creditors Await Answers
John J. Ray III, the CEO of FTX Debtors, highlighted the massive effort behind this recovery process. Over the past two years, the FTX team has recovered billions of dollars for customers and creditors. With the plan going live on January 3, 2025, the main focus shifts to timely distributions. Claim holders in the convenience classes must meet know-your-customer (KYC) requirements to receive payouts.
The exchange is working with BitGo, a regulated digital custodian, and Kraken, a leading cryptocurrency exchange, to speed up stablecoin distributions to both retail and institutional customers.
Could This Be the Bottom for FTX Token (FTT)?
This announcement has renewed enthusiasm in the crypto community. Specifically, the FTX Token (FTT) has garnered market attention due to its recent price action.
The token appears to be forming a double-bottom pattern, a bullish signal that could result in a massive price surge of over 550%. If the pattern holds, FTT could even reach $20 again. Market participants expect a potential surge as further recovery details emerge in early 2025.
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