FTX bankruptcy estate aiming to begin repaying creditors by the end of 2024

Quick Take

  • In the first meeting of FTX Digital’s Joint Official Liquidators in the Bahamas, the liquidators outlined the timeline for repayment to customers that was coordinated with the Chapter 11 bankruptcy estate. 
  • The liquidators and Chapter 11 Debtors have a “shared goal” to distribute the first funds to creditors by the end of 2024. 

The FTX bankruptcy estate has set a goal to begin repaying customers by the end of 2024, according to notes from a meeting of FTX Digital's Joint Official Liquidators in the Bahamas. 

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. However, both sides of the estate have agreed to work together such that creditors may submit their claim to either entity and that no creditor receives less than the value they're entitled to. 

To that end, both the Chapter 11 Debtors and the Joint Official Liquidators "have a shared goal to make the first interim distribution by the end of 2024 to creditors with admitted claims and satisfactor