Wednesday, February 19, 2025

Kraken to Facilitate FTX Customer Fund Distribution Under Chapter 11 Plan

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KEY TAKEAWAYS

  • Kraken partners with FTX Trading Ltd. to facilitate fund distribution to retail customers under the FTX Chapter 11 Plan of Reorganization.
  • Customers must use the FTX Debtors’ Customer Portal and select Kraken for fund distribution, ensuring a streamlined process.
  • Kraken’s history of security and industry leadership is reinforced by its role in fund recovery efforts, including the Mt. Gox case.

Kraken has announced an agreement with FTX Trading Ltd. and its affiliated debtors to assist in distributing recoveries to retail customers. This initiative is part of the U.S. bankruptcy court-approved FTX Chapter 11 Plan of Reorganization. The announcement was made here.

To ensure clients receive their funds, they are advised to complete the necessary steps through the FTX Debtors’ Customer Portal and select “Kraken” as their distribution method. This process is designed to streamline the distribution of funds to eligible customers in supported jurisdictions.

Kraken’s Commitment to Security and Recovery

Founded over 13 years ago, Kraken has consistently prioritized security and client service. The exchange was established following founder Jesse Powell’s experience with the Mt. Gox hack in 2011, which highlighted the need for robust security standards in the cryptocurrency industry.

Kraken has a history of setting industry standards, including pioneering the Proof of Reserves process in 2014. This process demonstrates that client account holdings are backed with in-kind, fully reserved assets. Kraken has committed to conducting this process regularly since January 2022.

Role in Fund Distribution and Industry Leadership

In addition to its role in the FTX fund distribution, Kraken was previously involved in supporting the investigation following the collapse of Mt. Gox. In 2024, the exchange was selected to aid in the distribution of funds to Mt. Gox creditors, further solidifying its position as a leader in the recovery of lost funds within the cryptocurrency sector.

These efforts underscore Kraken’s dedication to maintaining trust and security in the cryptocurrency market, as well as its ongoing commitment to assisting in the recovery of customer funds.


Disclaimer: The views expressed in this article are those of the authors and do not necessarily reflect the official policy of CoinsHolder. Content, including that generated with the help of AI, is for informational purposes only and is not intended as legal, financial, or professional advice. Readers should do their research before taking any actions related to the company and carry full responsibility for their decisions.
Shree Narayan Jha
Shree Narayan Jha
Shree Narayan Jha is a tech professional with extensive experience in blockchain technology. As a writer for CoinsHolder.com, Shree simplifies complex blockchain concepts, providing readers with clear and insightful content on the latest trends and developments in the industry.

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