FTX Begins Repayment Process, Sets Date for Claims Submission

The bankruptcy estate of the fallen exchange FTX has kicked off its plans to repay its creditors. A few hours after opening a claim window, the exchange has started notifying creditors that they can apply for reimbursement starting on May 15, 2024.

FTX noted in a PwC-managed claim portal created for the purpose of repaying its creditors that major assets would be claimed at the price they were when it filed for bankruptcy in November 2022. Assets like Bitcoin, Ethereum, BNB, and SOL were priced at $16,871, $1,258, $286, and $16.24, respectively. The US Bankruptcy Court had approved this move early in the year.

Distribution to Begin in Late 2024 or Early 2025

According to the PwC-managed claim portal, creditors should expect the first asset distribution by late 2024 or early 2025. Also, the exchange would pay all eligible claims submitted by creditors in US dollars.

Submitting an eligible claim involves four steps and is done only through the FTX Digital Claim Portal. The creditor must first create a claim portal account where FTX requires details like name, telephone number, and type of claimant.

The second and third steps involve inputting the creditor’s account details and balance acceptance. Once the customer accepts that the balance displayed on the site reflects his account size, the website will automatically generate a Proof of Debt, which the creditor will sign.

Large Gap From Current Price

It would come as a relief to creditors that they are receiving their money in full. However, the large gap in the prices of their assets when FTX filed for bankruptcy and presently has created discontent among them.

At the current market price, a 1 SOL owner then would be $113 richer and a 1 Bitcoin holder $44,873. Despite the attempted appeal by the creditors, Judge John Dorsey ruled in favor of FTX, citing the US bankruptcy law.