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 satisfactory KYC documentation," the notes, from the meeting on Mar. 15, read

Creditors have been able to submit claims on FTX's claims portal since Mar. 1, when the portal went live. The deadline is currently set for May 15 for creditors to choose one of the two bankruptcy processes and submit a claim, though according to the meeting, the deadline "is now expected to be extended to at least June 2024 based on recent developments." 

The Bahamian claims, like the Chapter 11 claims, will be valued as of November 11, 2022, the original date of the bankruptcy claim. 


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About Author

Zack Abrams is a writer and editor based in Brooklyn, New York. Before coming to The Block, he was the Head Writer at Coinage, a Web3 media outlet covering the biggest stories in Web3. The story he co-reported on Do Kwon won a 2022 Best in Business Journalism award from SABEW. Other projects included a deep dive into SBF's defense based on exclusive documents and unveiling the identity of the hacker behind one of 2023's biggest crypto hacks — so far. He can be reached via X @zackdabrams or email, [email protected].