FTX Distribution Supplier Selection to be Completed by January 20th: Initial Allocation Guidelines
FTX announced on January 4th that there are strict deadlines and requirements for the initial distribution of Convenience Classes according to the planned regulations. Only creditors who complete these requirements before the specified deadline will be eligible for the allocation. Failure to complete them within the stipulated period may result in payment delays or even loss of allocation rights.
Initial distribution deadline for FTX: January 3, 2025 (KYC must be passed)
To be eligible for the initial distribution, creditors must meet all pre-distribution requirements before January 3, 2025. This date is designated as the Initial Distribution Record Date. In particular, creditors must complete all conditions listed in Section 2.1.8 of the confirmed plan.
One important requirement is that creditors must complete the “Know Your Customer” (KYC) verification before this date. Creditors who fail to complete this step will not be able to participate in the initial distribution.
Additional requirements and extended deadline: January 20, 2025 (completion of tax forms and selection of distribution service providers)
Creditors who have been confirmed to be in the Convenience Classes on January 3, 2025 can complete the remaining pre-distribution steps within the additional deadline. The extended deadline is January 20, 2025, and creditors must fulfill the following requirements before this date:
Submit complete tax forms (Step 7).
Choose and successfully complete the onboarding process with a distribution service provider (Step 8).
Pass sanctions screening to ensure compliance with legal and regulatory requirements.
Creditors who fail to complete these steps before January 20, 2025 will be deferred to subsequent distribution rounds.
Consequences for FTX users who do not comply with the deadlines: Delayed compensation or loss of eligibility
According to the terms of the plan, creditors who fail to meet these deadlines will face the following consequences:
Payment delays:
Late applications will not be processed in the initial distribution and will be deferred to subsequent distribution rounds, which may result in a delay of several months.
Potential loss of allocation rights:
Section 7.8 of the plan states that creditors who fail to complete the pre-distribution requirements within six months after the Initial Record Date (before July 3, 2025) may lose their allocation rights.
Section 7.14 emphasizes that creditors must respond to requests and complete all pending tasks in a timely manner. Failure to do so within the specified time will also result in the loss of allocation rights.
What happens if the requirements are delayed?
For creditors who fail to complete the requirements within the initial distribution deadline but subsequently complete the relevant steps, their allocation will be processed in the following months. However, it is strongly recommended that creditors comply with the initial deadline to avoid unnecessary delays or other complications.
Final reminder to creditors
Creditors of the Convenience Classes plan should be aware of the urgency of time. To receive the allocation on time, please make sure to complete all pre-distribution requirements before the following key dates:
January 3, 2025: Initial Distribution Record Date
January 20, 2025: Final deadline for submitting tax forms, onboarding with the service provider, and sanctions screening
Creditors who fail to complete the requirements on time may face payment delays or even complete loss of allocation rights. Do not risk losing your allocation and take immediate action to ensure that all necessary steps are completed!
Risk Warning
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