According to notes from FTX Digital’s formal joint liquidator meeting held in the Bahamas, the FTX Insolvency Foundation has set a target to begin repaying customers by the end of 2024.
FTX’s bankruptcy consists of two separate processes running simultaneously. Chapter 11 bankruptcy adjudicated in a U.S. court in Delaware and formal liquidation process for FTX Digital, a subsidiary of Bahamas-based FTX. Nature of FTX Accounting. However, both sides of the estate agreed to cooperate to ensure that creditors could submit claims to either entity and that no creditor would receive less than they were entitled to.
To that end, both the Chapter 11 debtors and the joint official liquidators “have a common goal of making the first provisional distributions to creditors whose claims have been recognized and who have satisfactory KYC documentation by the end of 2024,” they wrote in a note from the March 11 meeting. 15, please read.
Creditors have been able to submit claims to FTX’s claims portal since March 1. Currently, the deadline for creditors to choose between the two bankruptcy proceedings and submit their claims is set for May 15, but according to the meeting, the deadline “is expected to be extended until at least June 2024, depending on recent developments.”
Like Chapter 11 claims, Bahamas claims are assessed as of the original date of the bankruptcy claim, November 11, 2022.
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