FTX Aims for Customer Repayment by 2024 End Amid Bankruptcy
- FTX bankruptcy estate aims to repay customers by 2024 end as per notes from its bankruptcy meeting, facilitating claims through Chapter 11 and Bahamas liquidation processes.
- The estate also plans to distribute interim payments to creditors by 2024 end, with recent asset sales to compensate for the exchange's collapse.
According to the notes from a meeting of the Joint Official Liquidators of the bankrupt cryptocurrency exchange FTX in the Bahamas, the bankruptcy estate is set to repay customers by the end of 2024.
The FTX bankruptcy committee plans to begin distributing the first funds to creditors before the end of 2024. The deadline for creditors to submit claims will be extended until at least June 2024. Claims will be valued based on prices on November 11, 2022, which may be…
— Wu Blockchain (@WuBlockchain) April 1, 2024
FTX's bankruptcy involves two concurrent processes: Chapter 11 in a Delaware court and the official liquidation of its subsidiary, FTX Digital, in the Bahamas, due to accounting complexities. Both entities will collaborate to ensure creditors can submit claims to either, ensuring fair compensation.
Additionally, the notes from the meeting of March 15 also state that both the Chapter 11 Debtors and the Joint Official Liquidators aim to distribute the first interim payment to creditors with acknowledged claims and adequate KYC documentation by 2024 end.
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Last month, the FTX bankruptcy estate arranged to sell most of its stake in AI startup Anthropic for $884 million, in a bid to compensate those affected by the exchange's collapse. The estate also announced selling 41 million locked Solana (SOL) tokens for $7.5 billion. Neptune Digital was the first firm to publicly state it has bought 26,964 SOL at $64 per token.
Recently, SBF was sentenced to 25 years in prison by the U.S. District Judge Lewis Kaplan for deceiving customers and investors of CTX. He was also ordered to undergo three years of supervised release and to surrender over $11 billion in unlawfully acquired assets.
Edited by Harshajit Sarmah
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