FTX’s designated liquidator has issued a call to creditors, urging them to submit their claims electronically by the deadline of May 15, 2024. This move is part of a larger effort to streamline the claims process through a portal managed by PwC, which aims to begin its first round of interim distributions between the end of 2024 and the start of 2025. It’s crucial to note that all claims eligible for distribution will be calculated in U.S. dollars, ensuring a unified approach to the financial reconciliations ahead.
The entity at the heart of this operation, FTX Digital Markets Limited, plays a pivotal role as the primary regulated and licensed arm of the FTX International Platform. In a major turn of events, FTX Digital Markets and FTX Trading Ltd., together with its related creditors now undergoing Chapter 11 proceedings, have struck an agreement. This deal is a smart move to combine both sides’ assets, which will allow for a coordinated way to distribute them.
Such coordination is designed to guarantee that FTX.com customers involved in both legal proceedings will receive comparable returns at closely aligned times. This situation highlights the importance for all involved creditors and customers to actively participate in the claim submission process within the stipulated timeframe.
One important part of this process is that, by Bahamian law, distributions must be made exactly based on each valid claim, no matter how big or small it is. So, all cases will be handled in a fair and equal way. The FTX Digital Claims Portal is also designed to make things easy for users. They can check their account amounts, send in their claim forms online, and even make it easier for original claimants as well as potential investors or buyers to move claims.
Following FTX’s bankruptcy filing, the unfolding of the liquidation process saw the appointment of key individuals from the legal and financial sectors, tasked with overseeing the orderly winding down of FTX Digital’s operations. The appointment of these professionals signified the beginning of a meticulous process aimed at safeguarding the interests of all stakeholders involved.The recognition of FTX Digital’s provisional liquidation by the U.S. Court as a foreign main proceeding is a critical aspect of this process, facilitating a coordinated approach across jurisdictions.
It is important to note that FTX Digital’s situation is different from that of other FTX entities in the US that have also filed for Chapter 11 bankruptcy.
