FTX Creditor Claim Filing Guide: Latest Developments in the Liquidation Process and Key Operational Points

The FTX case, as the largest global bankruptcy liquidation case involving cryptocurrency assets, will have a significant impact on future related cases. With the main parties involved being convicted, the case has entered the liquidation stage, and the creditors' path to repayment has finally seen new progress.

Currently, the FTX liquidation entity has been established, and the claims portal is now open. For the vast majority of creditors, how to effectively file claims and maximize recovery is the most concerning issue at present. This article will provide a detailed introduction to the FTX claim filing process, offering practical guidance for creditors.

Background of the FTX Case and Liquidation Progress

FTX was established in 2019 and was once one of the top cryptocurrency exchanges in the world, with a peak valuation of $32 billion. At the end of 2022, FTX rapidly collapsed due to asset issues that triggered market panic. Due to its complex multinational corporate structure, FTX simultaneously initiated bankruptcy proceedings in both the Bahamas and the United States.

Currently, the Supreme Court of the Bahamas has appointed joint official liquidators (JOL) to oversee the liquidation of FTX Digital and its affiliated companies. The JOL has established a dedicated website for FTX creditor claims, which will uniformly accept various types of claims. The deadline for submissions is May 15, 2024.

Debt Claim Declaration Operation Guide

1. Register a Claim Account

First, visit the FTX creditor claim website and click on the blue box in the upper right corner to register an account. You need to fill in your name, email, location, and other information, and select the correct type of claimant:

• Individual customers: Users who register to use FTX in their personal name.
• Institutional Clients: Users who register FTX accounts as legal entities such as companies.
• Non-customer creditors: Entities that have other creditor-debtor relationships with FTX

2. Register Account Details

For FTX users, you can directly submit your FTX account registration information for linkage. After linking, please carefully verify whether the displayed asset balance is accurate. If there are any discrepancies, additional materials must be submitted through the Dispute Portfolio procedure.

Non-client creditors must provide complete evidence and documentation of their claims. For the assigned FTX bankruptcy claims, relevant assignment proof must be submitted. If the claims are secured, the security documentation must also be submitted.

3. Complete KYC identity verification

After submitting the above information, you also need to complete the standard KYC identity verification process, after which the debt declaration will be completed.

Explanation Regarding Duplicate Declaration

For creditors who have already declared their claims on the KROLL platform, if they declare again on the Bahamas platform, it will automatically be regarded as:

1. Withdraw the previous claim of debt in the United States.
2. Agree to transfer the debt rights to the jurisdiction of the Bahama Court

It should be noted that the United States and the Bahamas have reached a preliminary consensus on the liquidation of bankrupt assets, considering it as a whole for distribution. Therefore, the choice of which platform to declare will not affect the final compensation amount, but may influence specific procedures such as creditor recognition and objection handling. It is recommended to seek professional advice before deciding whether to re-declare.

Overall, the FTX creditor claim process has entered a substantive phase. Creditors should pay attention to the latest developments in a timely manner and complete the claims as required to protect their legal rights. For complex situations, it is advisable to seek assistance from professional legal advisors.