The FTX bankruptcy estate has outlined its target to initiate repayments to customers by the end of 2024, as disclosed during a meeting of FTX Digital’s Joint Official Liquidators in the Bahamas.
The FTX bankruptcy consists of two distinct processes, including the Chapter 11 bankruptcy being overseen by a Delaware court in the United States and the official liquidation of FTX Digital, the Bahamas-based subsidiary of FTX.
However, both entities have agreed to collaborate, allowing creditors to submit their claims to either party while ensuring that no creditor receives less than their entitled value.
According to the meeting notes from March 15, both the Chapter 11 Debtors and the Joint Official Liquidators aim to make the first interim distribution to creditors with admitted claims and satisfactory Know Your Customer (KYC) documentation by the end of 2024.
Creditors Are Submitting Claims
Creditors have been able to submit their claims through FTX’s claims portal since March 1.
The current deadline for choosing one of the two bankruptcy processes and submitting a claim is set for May 15.
However, per the meeting notes, the deadline “is now expected to be extended to at least June 2024 based on recent developments.”
Similar to the Chapter 11 claims, the Bahamian claims will be valued as of the initial bankruptcy claim date on November 11, 2022.
THE MINUTES OF THE FIRST MEETING OF CREDITORS
OF FTX DIGITAL MARKETS
Payments will start at end of 2024
With November 12, USD value.
Perhaps it would be more strategic for FTX DM to explore a partnership with OKX, particularly @star_okx, to facilitate USDC distribution. pic.twitter.com/OFa8sjm1QF
— 𝔽𝕋𝕏𝕣𝕖𝕝𝕠𝕒𝕕𝕖𝕕 (@FTXRELOADED) March 31, 2024
Last week, FTX also agreed to sell the majority of its shares in AI startup Anthropic for $884 million in a bid to pay back creditors.
In 2021, FTX and its sister firm Alameda invested $500m in the AI firm, holding a 7.84% stake.
The subsequent surge in the artificial intelligence sector, driven in part by the popularity of ChatGPT, led to a doubling in the value of these shares.
Anthropic has secured significant funding, totaling around $7b, from major tech players like Amazon, Alphabet, and Salesforce.
SBF Gets 25 Years in Prison
Sam Bankman-Fried, the founder of now-collapsed crypto exchange FTX, has been sentenced to 25 years in prison about five months after he was found guilty on all seven counts related to fraud and money laundering during his trial.
Before the sentencing, the Department of Justice (DOJ) highlighted the devastating consequences of FTX’s collapse, aiming to get a severe 40 to 50-year prison term for the disgraced crypto boss.
“When not lying, he was evasive, hair-splitting, trying to get the prosecutors to rephrase questions for him,” Southern District of New York (SDNY) Judge Lewis Kaplan said.
“I’ve been doing this job for close to 30 years. I’ve never seen a performance like that.”
While there is no possibility of parole in federal criminal cases, Bankman-Fried can still shave time off his 25-year sentence with good behavior.
“SBF may serve as little as 12.5 years, if he gets all of the jailhouse credit available to him,” Mitchell Epner, a former federal prosecutor, told CNN.
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