Refund of money to FTX clients will begin at the end of 2024
A meeting of official liquidators in the Bahamas concluded to begin repayment of FTX clients later this year
Customers of the FTX cryptocurrency platform who were affected by the bankruptcy will begin to receive their money refunded at the end of 2024.
This was recently agreed by the joint official liquidators of FTX Digital at a meeting in the Bahamas.
The bankruptcy of the cryptocurrency platform involves two processes that are developing in parallel, which are “the bankruptcy under Chapter 11, which is settled in a court in Delaware (United States), and the official liquidation process of FTX Digital, FTX’s Bahamas-based subsidiary, due to the “hopelessly mixed” nature of FTX’s accounting.”
To comply with affected clients, both parties will work together so that “no creditor receives less than the value to which they are entitled.”
The decision to pay the funds establishes that the Chapter 11 debtors and the joint official liquidators will make the first provisional refund in late 2024 to creditors with claims that were admitted “and satisfactory documentation.”
Since March 1, creditors began submitting claims on the FTX portal for this purpose. The deadline for creditors to choose one of the two bankruptcy processes and submit their claim is May 15, “although according to the meeting, the deadline is expected to be extended to at least June 2024 based on the latest developments.”
M.Pino
Source: cripto247
(Reference image source: Vladimir Solomianyi in Unsplash)
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