The appointed liquidator for FTX has issued a request to creditors, urging them to electronically submit their claims by the deadline of May 15, 2024. This initiative forms part of a broader strategy to streamline the claims process through a portal managed by PwC, with plans to commence interim distributions between late 2024 and early 2025. Notably, all eligible claims for distribution will be assessed in U.S. dollars, ensuring uniformity in financial reconciliations moving forward.
Central to this endeavour is FTX Digital Markets Limited, a key regulated and licensed entity within the FTX International Platform. In a significant development, FTX Digital Markets and FTX Trading Ltd., alongside related creditors currently undergoing Chapter 11 proceedings, have reached an agreement. This pact aims to consolidate assets from both sides, facilitating a coordinated approach to their distribution.
This coordination is intended to ensure that FTX.com customers involved in these legal proceedings receive comparable returns within closely aligned timeframes. It underscores the importance of active participation from all creditors and customers in adhering to the claim submission timeline.
Crucially, Bahamian law mandates that distributions be made strictly based on each valid claim, irrespective of its size. Thus, all cases will be handled equitably. The FTX Digital Claims Portal has been designed to simplify the process for users, enabling them to check account balances, submit claim forms online, and facilitate the transfer of claims for original claimants, as well as potential investors or buyers.
Following FTX’s bankruptcy filing, the commencement of the liquidation process saw the appointment of key figures from the legal and financial sectors to oversee the orderly wind-down of FTX Digital’s operations. The recognition of FTX Digital’s provisional liquidation by the U.S. Court as a foreign main proceeding is pivotal, facilitating a coordinated approach across jurisdictions.
It is important to distinguish FTX Digital’s situation from other FTX entities in the U.S. that have also filed for Chapter 11 bankruptcy.