Latest Developments in the FTX Bankruptcy Liquidation Case and Creditor Claims Guide

Recently, the actual controller of the FTX case, Sam Bankman-Fried(SBF), was sentenced to 25 years in prison for multiple charges, marking a temporary conclusion to this sensational cryptocurrency exchange collapse case. However, for many creditors, the most pressing concern remains the FTX bankruptcy liquidation process and whether their claims can be effectively settled.

As one of the largest bankruptcy liquidation cases in the world today, the handling of the FTX case will have a profound impact on the global cryptocurrency industry and provide important references for similar cases in the future.

Since the collapse of FTX in 2022, the creditor claim process has undergone multiple rounds. Due to disputes over the implementation of the liquidation plan and the difficulty of liquidating FTX's massive assets in the short term, creditors still face a long road to repayment. Currently, the liquidation entity and claims portal for FTX have been officially established and opened, and the creditor repayment process is about to commence. This article will provide a detailed introduction to the specific process and considerations for FTX creditor claims.

Background of the FTX Case and the Liquidation Team Situation

FTX was founded in 2019 and was once a top cryptocurrency exchange on par with Binance. Headquartered in the Bahamas, its main business is focused in the United States. It has hundreds of affiliated companies, with customers spread across hundreds of countries worldwide. After completing its Series C funding in 2022, FTX was valued at as much as $32 billion.

The collapse of FTX began at the end of 2022 when a media report revealed that Alameda Research ( was controlled by SBF and that ) 70% of its assets were in FTX's native token FTT. Subsequently, market panic intensified, leading to a crash in FTT, ultimately resulting in FTX's inability to continue.

After FTX's bankruptcy, both the Bahamian and U.S. courts were involved in the bankruptcy proceedings due to its headquarters and main operations being located in the Bahamas and the United States, respectively. In November 2022, the Supreme Court of the Bahamas appointed PricewaterhouseCoopers as the interim liquidator. In February 2023, the Delaware court in the U.S. recognized the interim liquidation from the Bahamas.

At the end of 2023, the Supreme Court of the Bahamas appointed joint official liquidators (JOL) to be responsible for the liquidation of FTX Digital and its affiliated companies. Currently, the JOL has established a dedicated website for FTX creditor claims, which will uniformly accept various types of claims. The deadline for claims submission is May 15, 2024.

FTX Creditor Claim Guide

1. Register a Claim Account

First, visit the FTX creditor claim website and click the blue button in the upper right corner to register an account. You need to fill in your name, email, country, and other information. Please use a reliable email, as a verification code will be sent to your email for subsequent logins.

Select the correct type of claimant:

• Individual clients: Users who register and use FTX in their personal capacity.
• Institutional clients: Register FTX accounts as legal entities such as companies.
• Non-customer creditors: entities that have other creditor relationships with FTX

2. Register creditor and customer account information

Individual/institutional clients need to submit FTX account registration information and link their FTX accounts.

After linking, carefully check whether the displayed account balance is consistent with the actual amount. If there are no objections, confirm to proceed to the claim process.

If there is a dispute regarding the balance, additional supporting documentation must be provided to JOL through the Dispute Portfolio process. It is recommended to consult a professional to assist in preparing the materials.

For the assigned FTX claims, a complete assignment proof of the claims must be submitted. If there are any guarantees related to the claims, the guarantee certificates must also be submitted.

The KYC identity verification process has been completed, and the debt declaration is now complete.

Does ### need to be re-declared if it has already been declared to KROLL?

The bankruptcy case of FTX Trading Ltd. in the United States has been accepted by the Delaware court and is being administered by KROLL for creditor registration. Many investors have already filed claims with KROLL.

Re-filing on the FTX claims website in the Bahamas will have two legal consequences:

1. Considered as a withdrawal of the claim against FTX Trading Ltd.
2. The creditor's rights are transferred 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, which will be distributed as a whole after liquidation. Therefore, filing in the Bahamas or the United States will not result in any substantive differences.

The choice of declaration location primarily affects procedural issues such as creditor recognition and objection handling. It is recommended to consult a professional legal team before making a choice to maximize the protection of one's rights.