According to the meeting minutes held in the Bahamas by the joint liquidators of FTX Digital Markets (FTX DM), the FTX bankruptcy committee plans to begin distributing the first funds to creditors by the end of 2024. The meeting minutes state that this timeframe is a “mutual goal coordinated between the debtor and the joint liquidators,” which means that FTX platform users within the United States Chapter 11 bankruptcy proceedings can also expect to receive their first payments by the end of 2024.
The FTX bankruptcy liquidation will be handled concurrently through two separate bankruptcy processes: the Chapter 11 bankruptcy proceedings in Delaware, USA, and the liquidation process of FTX Digital Markets’ subsidiary in the Bahamas.
According to previous reports by Zombit, FTX debtors have reached a global settlement with the joint liquidators of FTX Digital Markets. This bankruptcy process will coordinate the consolidation of assets and negotiate the allocation of funds as well as the distribution timeline and amounts. This means that creditors, whether in the US bankruptcy proceedings or the Bahamas liquidation process, can expect to receive similar claim amounts around the same time.
Since the launch of the FTX claims portal on March 1st, creditors have been able to submit their claims on the portal. The current deadline for creditors to submit their claims is May 15th, but the meeting minutes indicate that the deadline for claim submissions is expected to be extended until at least June 2024. Additionally, the decision to value the claims based on the prices of November 11th, 2022, remains unchanged.
