FTX Bahamas Entity has extended the deadline for creditors to submit claims for compensation from yesterday to the end of July or early August, synchronizing with the voting deadline for creditors in the US proceedings. Please be reminded to confirm if your KYC for the claim has been completed.
Background:
FTX Liquidation Compensation Progress: Full refund promised, but victims should not celebrate too early, selling off SOL, repayment to start in September at the earliest.
Bankrupt cryptocurrency exchange FTX recently released its latest repayment plan, estimating the owed amount to be around $11.2 billion. However, after selling off assets, it will have approximately $14.5 billion to $16.3 billion in cash for compensation. This means that not only will it be able to achieve a full refund, but the majority of users (those who held funds below $50,000) will receive approximately 118% cash compensation.
However, it is important to clarify that this loss compensation is calculated based on the funds held by FTX on the day of filing for Chapter 11 bankruptcy, so unless the assets held by users on FTX were stablecoins, they would still incur significant losses (BTC was only $17,000 at the time).
To receive compensation from FTX, creditors need to complete the claims application within a specified period. The original deadline was yesterday (15th), but FTX Bahamas Entity (FTX Digital Markets Ltd.) has 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, 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 to approve the Chapter 11 reorganization plan in the US proceedings. Although the new deadline has not been confirmed, 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 proceedings or the US proceedings, but not 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 proceedings and the US proceedings, it is expected that customers will receive the same compensation at the same time.
In summary, this email primarily informs customers and creditors that the deadline for the liquidation process has been extended and explains the liquidation proceedings that customers can choose to participate in. The notice also emphasizes that regardless of whether you choose to participate in the US proceedings or the Bahamas proceedings, you 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 for any additional action upon receiving the email from FTX Digital.
How to confirm if the claim KYC has been completed?
On September 18 last year, the FTX customer claims portal Claims.ftx.com was opened, allowing users to submit claims, complete KYC, and submit debt proof. You can log in to your account again to confirm your current KYC progress.
If it is not displayed as “On Hold” or “Verified” as shown in the image below, please follow the tutorial on how to file a claim on FTX previously written by the BlockTempo, which includes 10 steps to guide you through the filling out, KYC uploading, and ultimately receiving the formal Kroll proof.
Related Reports:
FTX repayment latest progress: 98% of creditors will receive 118% cash repayment! Issuance as early as September.
Chainsight Analysis: Did Taiwan Steaker put 83% of customer funds into 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 creditor registration has been extended until June 30th.