FTX Aims to Begin to Repay Customers by the End of 2024

Reported by The Block, the FTX bankruptcy estate has set a goal to begin repaying customers by the end of 2024, according to notes from a meeting of FTX Digital's Joint Official Liquidators in the Bahamas.

FTX's bankruptcy is made up of two separate processes running in parallel: the Chapter 11 bankruptcy being adjudicated in a Delaware court in the United States and the official liquidation process of FTX Digital, FTX's subsidy based in the Bahamas, due to the "hopelessly commingled" nature of FTX's accounting. However, both sides of the estate have agreed to work together such that creditors may submit their claim to either entity and that no creditor receives less than the value they're entitled to.

To that end, both the Chapter 11 Debtors and the Joint Official Liquidators "have a shared goal to make the first interim distribution by the end of 2024 to creditors with admitted claims and satisfactory KYC documentation," the notes, from the meeting on Mar. 15, read.

Creditors have been able to submit claims on FTX's claims portal since Mar. 1, when the portal went live. The deadline is currently set for May 15 for creditors to choose one of the two bankruptcy processes and submit a claim, though according to the meeting, the deadline "is now expected to be extended to at least June 2024 based on recent developments."

The Bahamian claims, like the Chapter 11 claims, will be valued as of November 11, 2022, the original date of the bankruptcy claim.