FTX Collaborates with Bahamian Liquidators to Settle Debts
FTX has partnered with Bahamian liquidators to establish a repayment plan for its creditors. The agreement builds upon a previous deal and introduces a unique method of valuing FTX’s cryptocurrency assets. The valuation will be based on market prices at the time of FTX’s bankruptcy filing, without considering subsequent market fluctuations.
Repayment Options for FTX Customers
Under the terms of the agreement, FTX customers have two options for receiving their dues: either through the liquidation process in the Bahamas or via bankruptcy proceedings in the United States.
FTT Claims Not Eligible for Reimbursement
Claims associated with FTX’s digital token, FTT, are classified as equity and are therefore not eligible for financial reimbursement.
Valuation of Claims and Repayment Process
All claims for cash or digital assets from FTX customers (excluding NFT-related claims) will be assessed in U.S. Dollars, using the price points relevant to the dates of petition filings. Eligible FTX.com customers will need to decide on their preferred jurisdiction (Bahamas or United States) for processing and resolving their claims by the second quarter of 2024.
Hot Take: FTX Collaborates with Bahamian Liquidators to Determine Debt Repayment
FTX has finalized an agreement with Bahamian liquidators to establish a repayment plan for its creditors. The unique valuation method based on market prices at the time of bankruptcy filing aims to provide a fair settlement. FTX customers have two options for receiving their dues and must decide on their preferred jurisdiction. However, claims linked to FTX’s digital token, FTT, are not eligible for financial reimbursement. The repayment process will assess claims in U.S. Dollars, and eligible customers must make their decision by the second quarter of 2024. Overall, this collaboration aims to resolve FTX’s debts and provide clarity to its customers.
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