FTX Claim Filing Guide: Latest Liquidation Progress and Detailed Operating Procedures

Recently, there has been new progress in the highly publicized FTX bankruptcy case. With the main responsible party sentenced, the liquidation process has officially begun. As the largest cryptocurrency asset bankruptcy liquidation case in the world today, the handling of the FTX case will have a profound impact on global judicial practices.

Currently, the liquidation entity and claims portal of FTX have been established and opened, and the repayment to creditors is about to begin. This article will provide a detailed introduction to the background of the FTX case, the situation of the liquidation team, and the specific operational guidelines for creditor claims.

Background of the FTX Case and Overview of the Liquidation Team

FTX was once a top cryptocurrency exchange on par with Binance, headquartered in the Bahamas, primarily focused on the United States. After completing its Series C funding round in 2022, FTX was valued at $32 billion. However, due to the exposure of asset issues related to its affiliate Alameda Research, coupled with Binance's announcement to liquidate FTT tokens, panic ensued in the market, ultimately leading to FTX's bankruptcy.

Given that FTX has operations and assets in both the Bahamas and the United States, courts in both countries are involved in the liquidation process. The Supreme Court of the Bahamas appointed a representative from PwC as the liquidator, while the Delaware court in the United States initiated bankruptcy proceedings against FTX Trading Limited and its affiliated entities under U.S. bankruptcy law.

At the end of 2023, the Supreme Court of the Bahamas appointed the joint official liquidator (JOL), responsible for liquidating FTX assets and compensating creditors through the specialized entity "FTX Digital Markets Ltd". Currently, the JOL has established a claims filing website for FTX, and all claims must be submitted by May 15, 2024.

FTX Creditor Claim Submission Guide

1. Register Claim Account

First, creditors need to visit the FTX claims filing and compensation portal and register a personal claims account. During registration, they need to provide information such as name, email, location, and contact details. It is recommended to use a reliable email, as subsequent logins will require an email verification code.

You need to select the correct type of claimant when registering:

• Individual customers: Users who register and use the FTX platform in their personal capacity.
• 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 or its affiliates.

2. Fill in the creditor and account information

For individual or institutional clients of FTX, account registration information on FTX must be submitted to link the FTX account. After the linking is completed, the system will display the account balance. Please carefully verify whether the displayed assets are consistent with the actual ones. If there are no objections, you can confirm directly; if there are objections, you need to provide more supporting materials through the dispute process.

For non-client creditors or assigned claims in the FTX bankruptcy, more detailed proof of claim materials must be submitted. It is recommended to consult professionals to assist in preparing the filing documents.

3. Complete KYC process

Finally, the identity verification process is completed as required, and the debt declaration is thus finished.

Explanation about Duplicate Declaration

For creditors who have already filed claims on the KROLL platform (the designated registration platform of the Delaware Court in the United States), if they file again on the Bahamas platform, the following effects will automatically occur:

1. Considered as a withdrawal of the debt claim and complaint filed in the United States.
2. The debt rights shall be governed and handled by the courts of the Bahamas.

It should be noted that the United States and the Bahamas have reached a preliminary consensus on the liquidation of bankruptcy assets, which will be distributed as a whole after liquidation. Therefore, declaring on different platforms will not affect the final compensation ratio, but may affect specific procedures such as creditor recognition and objection handling. It is recommended to consult a professional lawyer's opinion before making a choice.