FTX Bankruptcy Estate Announces Ambitious Timeline To Pay Creditors

By Vince • March 31, 2024 11:18 pm • Comments

Will FTX creditors and former clients of the now-defunct platform be made whole soon?

That’s what the FTX bankruptcy estate hopes to do and recently announced its intentions to begin reimbursing creditors by distributing the first funds to the injured parties by the end of 2024.

It remains to be seen whether or not FTX is able to meet its ambitious goal of dispensing the first payments by year’s end.

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At the time of this writing, creditors now have an extended deadline to file claims with the FTX estate, with the window closing in June of this year.

Numerous sources touched on the embattled estate’s lofty goals:

The Block explained:

FTX’s bankruptcy is made up of two separate processes running in parallel: the Chapter 11 bankruptcy being adjudicated in a Delaware court in the United States and the official liquidation process of FTX Digital, FTX’s subsidy based in the Bahamas, due to the “hopelessly commingled” nature of FTX’s accounting.

Moonward Capital writes: “The Chapter 11 bankruptcy in the US and Bahamas liquidation efforts align to ensure fair creditor repayment.”

According to Daily Coin:

Creditors have been able to submit claims on the FTX’s claims portal since March 1, when the portal went live. Users have until May 15 to choose one of the two bankruptcy processes and submit a claim. However, the deadline is expected to be extended to at least June 2024, per the meeting.

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