FTX Delays Debt Submission Deadline To August, Here’s All

In a groundbreaking decision, the bankrupt crypto exchange FTX announced its intention to repay all creditors and customers with interest, as disclosed in its latest distribution plan. This unprecedented move garnered mixed reactions within the crypto community. While many lauded the initiative as a positive step towards rectifying the fallout from FTX’s collapse, creditors expressed dissatisfaction. Their concerns stem from uncertainties surrounding the distribution process and potential delays in receiving their dues.

FTX Extension of Debt Submission Deadline

According to information shared by FTX creditor Sunil on a post on X, the joint official liquidators of FTX Digital Markets have decided to extend the deadline for submitting proof of debt. Initially, creditors were required to submit their claims by a specific date, but this has now been postponed to the end of July or early August.

FTX claims

Bahamas Bar date extended 10-12weeks:

End of July/August pic.twitter.com/HadnXKrDvI

— Sunil (FTX Creditor Champion) (@sunil_trades) May 15, 2024

This extension provides customers with an additional 10-12 weeks to file their claims within the Bahamas procedure. Importantly, FTX customers have the option to participate in either the Bahamas procedure or the US procedure, but not both simultaneously. A detailed disclosure document will be distributed in June, outlining the implications of choosing either procedure. Customers will then have 6-8 weeks from the document’s release to finalize their decision.

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Implications and Next Steps for Creditors

The decision to delay the debt submission deadline and provide a detailed disclosure document aims to offer clarity and additional time for FTX customers. While there may be procedural differences between the Bahamas and US claims processes, it is anticipated that distributions will be equivalent and occur concurrently.

This approach is intended to streamline the claims process and ensure fairness in the distribution of assets. However, the delay has added to creditors’ frustration, highlighting the ongoing complexities and challenges in resolving FTX’s bankruptcy. As customers await the disclosure document, the crypto community remains watchful of how these developments will unfold and impact the final repayment outcomes.

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