FTX Liquidators Target Repayment to Creditors by End of 2024
The FTX bankruptcy estate has outlined its target to initiate repayments to customers by the end of 2024, as disclosed during a meeting of FTX Digital’s Joint Official Liquidators in the Bahamas.
The FTX bankruptcy consists of two distinct processes, including the Chapter 11 bankruptcy being overseen by a Delaware court in the United States and the official liquidation of FTX Digital, the Bahamas-based subsidiary of FTX.
However, both entities have agreed to collaborate, allowing creditors to submit their claims to either party while ensuring that no creditor receives less than their entitled value.
According to the meeting notes from March 15 , both the Chapter 11 Debtors and the Joint Official Liquidators aim to make the first interim distribution to creditors with admitted claims and satisfactory Know Your Customer (KYC) documentation by the end of 2024.
Creditors have been able to submit their claims through FTX’s claims portal since March 1.
The current deadline for choosing one of the two bankruptcy processes and submitting a claim is set for May 15.
However, per the meeting notes, the deadline “is now expected to be extended to at least June 2024 based on recent developments.”
Similar to the Chapter 11 claims, the Bahamian claims will be valued as of the initial bankruptcy claim date on November 11, 2022.
THE MINUTES OF THE FIRST MEETING OF CREDITORS
OF FTX DIGITAL MARKETS
Payments will start at end of 2024
With November 12, USD value.
Perhaps it would be more strategic for FTX DM to explore a partnership with OKX, particularly @star_okx, to facilitate USDC distribution. pic.twitter.com/OFa8sjm1QF
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