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FTX Aims for Customer Repayments by the end of 2024

FTX Aims for Customer Repayments by the end of 2024

Notes from a meeting of FTX Digital's Joint Official Liquidators in the Bahamas reveal that the FTX bankruptcy estate aims to initiate customer repayments by the close of 2024.

FTX’s bankruptcy involves two distinct proceedings occurring concurrently: a Chapter 11 bankruptcy overseen by a Delaware court in the United States and the official liquidation of FTX Digital, a Bahamas-based subsidiary of FTX, due to the intricate mingling of FTX’s finances. However, cooperation between both branches of the estate ensures that creditors can submit claims to either entity, with each creditor receiving their entitled value.

The Chapter 11 Debtors and the Joint Official Liquidators share the objective of commencing the initial distribution to creditors with admitted claims and satisfactory KYC documentation by the end of 2024, as per the meeting notes from March 15.

READ MORE: Debate Arises Over Length of Sentence for FTX Founder Sam Bankman-Fried

Creditors have been able to lodge claims via FTX’s claims portal since March 1, with the deadline originally set for May 15. However, recent developments indicate an anticipated extension of the deadline to at least June 2024, as per the meeting.

Claims under Bahamian jurisdiction, akin to those in the Chapter 11 proceedings, will be assessed based on their value as of November 11, 2022, the original bankruptcy claim date.

Alexander Stefanov

Reporter at CoinsPress

Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.

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