FTX Customers to File Claims by May 15, 2024
The official liquidator of FTX has instructed creditors to file electronic claims by May 15, 2024. The claims portal managed by PricewaterhouseCoopers (PwC) anticipates commencing its initial distribution either in late 2024 or early 2025, with all valid claims being expressed in U.S. dollars.
PwC Announces Chapter 11 Settlement for FTX and Debtors
In a statement, PricewaterhouseCoopers (PwC), the official liquidator overseeing FTX’s bankruptcy proceedings, disclosed that FTX Digital Markets is undergoing a Chapter 11 settlement with FTX Trading and its affiliated debtors.
“FTX Digital Markets has successfully negotiated a settlement with FTX Trading Ltd. and its affiliated debtors under the Chapter 11 Proceedings,” the statement read.
This agreement aims to consolidate assets from both entities’ estates, facilitating a coordinated approach to creditor distributions. The objective is to ensure that FTX’s customers receive substantially identical distributions at identical times in both proceedings.
The statement also noted that the Bahamian liquidation process guarantees “substantially the same return at the same time as the U.S. process.” Under Bahamian law, the liquidators must distribute the dollar on every eligible claim, regardless of size.
FTX Digital has launched a dedicated claims portal to streamline the process, allowing customers and non-customer creditors to submit their claims. The portal offers various functionalities, including the ability to view holding balances, lodge an electronic proof of claim form, and transfer claims between original claimants and investors or claim purchasers.
Wu Blockchain’s findings suggest that the FTX claim window sets pricing at $16,871 for BTC, $1,258 for ETH, $16.24 for SOL, and $286 for BNB, which is notably lower than current market rates.
The deadline for electronic claims submission has been set for May 15, 2024. The claims portal is expected to start its first distribution in late 2024 or early 2025, with all eligible claims denominated in United States dollars.
FTX Warns Against Unauthorized Bidding
Meanwhile, FTX has issued a cautionary statement regarding its authorized investment manager, Galaxy Asset Management. The exchange warned against unauthorized third parties attempting to bid on behalf of specific FTX Debtors, emphasizing that Galaxy Asset Management holds exclusive jurisdiction over the sale of digital assets mandated by the bankruptcy court.
(1/4) The FTX Debtors’ sale of Digital Assets pursuant to Bankruptcy Court Order no. 2505 is exclusively being handled by the FTX Debtors’ court-authorized Investment Manager, Galaxy Asset Management ([email protected]).
— FTX (@FTX_Official) March 1, 2024
The firm further clarified that should the FTX Debtors decide to sell locked digital assets, the terms and conditions dictating the schedule for unlocking them would remain unchanged.
FTX’s bankruptcy proceedings took a turn recently when the United States Bankruptcy Court for the District of Delaware approved the sale of its stake in the artificial intelligence firm Anthropic, valued at over $1 billion.
Hot Take: FTX Customers Urged to File Claims Before Deadline
The official liquidator overseeing FTX’s bankruptcy proceedings has urged customers to file their electronic claims before the May 15, 2024 deadline. Failure to do so may result in the loss of their entitlements. PricewaterhouseCoopers (PwC), the firm managing FTX’s liquidation process, has established a claims portal to facilitate the submission of claims and streamline the distribution process.
The Chapter 11 settlement between FTX Digital Markets and FTX Trading and its affiliated debtors aims to consolidate assets and ensure that customers receive identical distributions at the same time. This coordinated approach is intended to provide a fair and efficient resolution for all parties involved.
FTX has issued a warning against unauthorized bidding by third parties. Galaxy Asset Management, the authorized investment manager appointed by the bankruptcy court, holds exclusive jurisdiction over the sale of digital assets. Customers are advised to be cautious and only engage with authorized parties to avoid any potential scams or fraudulent activities.
With the claims submission deadline approaching, it is crucial for FTX customers to take action and file their claims electronically. The claims portal offers a user-friendly interface where customers can view their holding balances, submit electronic proof of claim forms, and transfer claims if necessary.
It is important for customers to note that the prices set for claims on the FTX platform may be lower than current market rates. However, this does not diminish the value of their entitlements, as Bahamian law ensures that every eligible claim will be distributed in U.S. dollars.
In conclusion, FTX customers must act promptly and file their electronic claims before May 15, 2024. The liquidation process is expected to commence in late 2024 or early 2025, with all valid claims being expressed in U.S. dollars. By following the instructions provided by PwC and exercising caution when dealing with third parties, customers can ensure a smooth and fair resolution of their claims.
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