Complete the FTX distributor selection by 1/20! Initial allocation guidelines: Important dates and requirements for FTX creditors to note

FTX announced on 1/4 that, according to the provisions of the plan for Convenience Classes, the initial allocation has strict deadlines and pre-allocation requirements. Only creditors who complete these requirements before the specified deadline will be eligible for allocation. Failure to complete them within the specified period may result in latency in payment or even loss of allocation rights.

FTX Initial Allocation Deadline: January 3, 2025 (must have passed KYC)

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 fulfill all conditions listed in Section 2.1.8 of the confirmed plan.

One of the important requirements 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 allocation.

Additional requirements and extended deadline: January 20, 2025 (complete tax forms and allocate supplier selection)

The creditors confirmed to be included in the convenience category on January 3, 2025 can complete the remaining steps of distribution within the additional deadline. The extended deadline is January 20, 2025, before which the creditors need to complete the following requirements:

Submit the complete tax form (Step 7.).

Choose and successfully complete the integration with the service provider for allocation (Step 8.).

Through sanction screening to ensure compliance with legal and regulatory requirements.

Creditors who fail to complete these steps before January 20, 2025, will have their claims delayed for subsequent distribution rounds.

Consequences for FTX users who do not comply with deadlines: delayed compensation or disqualification

According to the terms of the plan, creditors who fail to meet these deadlines will face the following impacts:

Payment latency:

Delayed applications will not be processed in the initial allocation, but will be postponed to subsequent allocation rounds, and the waiting time may be extended for several months.

Possible loss of allocation rights:

According to section 7.8 of the plan, if a creditor fails to make a distribution request within six months after the initial record date (before July 3, 2025), they may lose the right to distribution.

Section 7.14 emphasizes that creditors must respond promptly to requests and complete all outstanding tasks. Failure to do so within the specified time frame will result in the loss of allocation rights.

What happens if the latency requirements are met?

For creditors who fail to complete the requirements by the initial allocation deadline but do so in subsequent steps, their allocations will be processed in the following months. However, creditors are strongly advised to adhere to the initial deadline to avoid unnecessary latency or other complications.

Final Reminder to Creditors

Lenders of the convenience class program need to pay attention to the urgency of time. If you want to receive the distribution on time, please make sure to complete all pre-distribution requests before the following key dates:

January 3, 2025: Initial allocation record day

January 20, 2025: The final deadline for tax form submission, supplier integration, and sanction review

Overdue unfinished debts may face payment latency, or even in some cases, completely lose distribution rights. Do not risk losing your debts, take immediate action to ensure all necessary steps are completed!

This article will be completed by 1/20 before the selection of FTX distributors! First distribution guide: Important dates and requirements for FTX creditors to note first appeared on Chain News ABMedia.