CDS Crypto News The FTX bankruptcy estate aims to initiate repayments to creditors by the end of 2024
Crypto News

The FTX bankruptcy estate aims to initiate repayments to creditors by the end of 2024

During the inaugural meeting of FTX Digital's Joint Official Liquidators in the Bahamas, the liquidators delineated a repayment schedule for customers that was synchronized with the Chapter 11 bankruptcy estate.

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The FTX Bankruptcy Estate Aims To Initiate Repayments To Creditors By The End Of 2024

Crypto News– According to the minutes from a meeting of FTX Digital’s Joint Official Liquidators in the Bahamas, the FTX bankruptcy estate has set a target to start reimbursing customers by the close of 2024.

The FTX bankruptcy estate aims to initiate repayments to creditors by the end of 2024

FTX’s bankruptcy involves two separate proceedings happening simultaneously: the Chapter 11 bankruptcy in a Delaware court in the United States and the official liquidation process of FTX Digital, a subsidiary of FTX based in the Bahamas. This is due to the complex and intertwined nature of FTX’s accounting. Nevertheless, both sides of the estate have agreed to collaborate, allowing creditors to submit their claims to either entity, ensuring that each creditor receives the rightful amount they are owed.

Both the Chapter 11 Debtors and the Joint Official Liquidators have committed to a shared objective of making the initial interim distribution to creditors with accepted claims and satisfactory KYC documentation by the end of 2024, as stated in the meeting notes from March 15th.

Creditors have had the opportunity to file claims through FTX’s claims portal since March 1st, when the portal became operational. Initially, the deadline for creditors to select one of the two bankruptcy processes and submit a claim was set for May 15th. However, as per the meeting, it’s now anticipated that this deadline will be extended to at least June 2024, citing recent developments.

Similar to the Chapter 11 claims, the Bahamian claims will be assessed based on their value as of November 11, 2022, the original date of the bankruptcy claim.

The FTX bankruptcy estate aims to initiate repayments to creditors by the end of 2024

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