The bankruptcy estate of the cryptocurrency exchange FTX, managed by the Joint Official Liquidators of FTX Digital in the Bahamas, aims to begin repaying customers by the end of 2024.
This process involves two parallel procedures, a Chapter 11 bankruptcy in a Delaware court in the US and the official liquidation of FTX Digital in the Bahamas due to complex accounting issues.
The notes from the meeting on Mar. 15 stated, “a shared goal to make the first interim distribution by the end of 2024 to creditors with admitted claims and satisfactory KYC documentation.”
Both entities are working together to ensure fair treatment for creditors, allowing them to submit claims to either side without receiving less than they’re owed.
Creditors have been able to submit claims since March 1 via FTX’s claims portal, with a deadline initially set for May 15 but now expected to extend to at least June 2024. Claims will be valued as of November 11, 2022, the original bankruptcy date.
The cooperative approach between Chapter 11 Debtors and Joint Official Liquidators aims to facilitate timely repayments to creditors with admitted claims and proper KYC documentation.
This development signifies progress in resolving FTX’s financial obligations and provides clarity for creditors seeking restitution.
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