FTX Bahamas has extended the deadline for creditor claims to the end of July or early August, synchronizing it with the voting deadline for creditors in the US proceedings. Please verify if your KYC for the claim has been completed.
Background:
FTX liquidation compensation progress: Full refund promised, but victims should not celebrate too early, SOL dumped, earliest repayment to start in September.
Bankrupt cryptocurrency exchange FTX recently announced its latest repayment plan, estimating the owed amount to be around $11.2 billion. However, after selling off assets, FTX will have approximately $14.5 billion to $16.3 billion in cash for compensation, allowing for full refunds and approximately 118% cash compensation for the majority of users (those who previously held funds below $50,000).
It is important to clarify that the compensation for losses is calculated based on the funds held on the FTX platform on the day of the bankruptcy filing under Chapter 11. Therefore, unless users had stablecoins in their FTX assets, they would still have suffered significant losses (BTC was only $17,000 at that time).
To receive compensation from FTX, creditors need to complete the claims application within the designated period. The original deadline was yesterday (15th), but FTX Bahamas entity (FTX Digital Markets Ltd.) sent an email to customers stating that the deadline for submitting claims has been extended.
FTX extends the claims application deadline to the end of July or early August.
According to the email content, the original deadline for debt proof submission set by FTX was May 15, 2024, which was the final deadline for FTX customers to submit claims and participate in the Bahamas liquidation process.
The letter states that the deadline will be extended to align with the voting deadline for creditors approving the Chapter 11 restructuring plan in the US proceedings. Although the new deadline has not been determined, it is expected to be at the end of July or early August, giving customers an additional 10-12 weeks to submit claims.
Creditors can choose to participate in either the Bahamas or US proceedings but cannot participate in both. Customers will receive relevant documents in June and will have 6-8 weeks to make a final choice.
Although there may be some differences between the Bahamas and US proceedings, it is expected that customers will receive the same compensation at the same time.
Summary:
This email primarily notifies customers and creditors that the deadline for the liquidation process has been extended and explains the liquidation procedures they can choose to participate in. The notice also emphasizes that regardless of whether customers choose to participate in the US or Bahamas proceedings, they will receive the same compensation at the same time. However, most people only need to complete the US proceedings unless there are special circumstances, so there is no need to take any additional action upon receiving the email from FTX Digital.
How to confirm if the claim KYC has been completed?
On September 18th last year, FTX opened the customer claim portal, claims.ftx.com, where users could apply for claims, complete KYC, and submit debt proofs. You can log into your account again to confirm your current KYC status.
If it is not displayed as “On Hold” or “Verified” as shown in the image below, please follow the step-by-step guide “FTX Claim Application Tutorial” previously written by the Dynamic Zone, which includes 10 steps to fill out, upload KYC, and ultimately obtain the formal Kroll certification.
Related reports:
Latest progress on FTX repayments: 98% of creditors will receive 118% cash reimbursement! Earliest distribution before September.
Chainsight analysis: Taiwan Steaker placed 83% of customer funds in FTX? A total of $40 million?
FTX repayment is coming! The first batch of compensation will be distributed by the end of 2024, and the registration of claims has been extended to June 30th.