Creditors will have more time to lodge their claims now that FTX Digital Markets has chosen to extend the deadline.
Once the bankruptcy court gives the go-ahead, the defunct cryptocurrency exchange FTX will pay back its creditors and consumers in full, within 60 days. Some in the crypto world have spoken highly about this project, while others have voiced their reservations, mainly since they are still suspicious of the distribution method.
Creditors will have more time to lodge their claims now that FTX Digital Markets has chosen to extend the deadline. Sunil, an activist for FTX creditors, disclosed in a post he made on X that the original deadline for the Proof of Debt was May 15, 2024. Customers are now able to make claims in the Bahamas since the procedure has been prolonged by 10 to 12 weeks. According to the article, the creditors will be able to accept a Chapter 11 reorganisation plan in the US procedure by the new, as-yet-undetermined bar date, which coincides with their voting deadline.
Only users with the default FTX may take part in the US or Bahamas processes. The two procedures in question are two distinct court actions that dealt with the financial responsibilities of the defunct cryptocurrency exchange FTX in connection with its bankruptcy. Customers will get the terms and conditions for participation in one of the procedures by the end of the month, and they will have six to eight weeks from the date of disclosures to choose which route they want to pursue. Customers shouldn’t be too concerned since both approaches will provide identical results and happen simultaneously, even if there may be some variances.
Recall that the default cryptocurrency exchange’s asset and liability, FTX Estate, recently announced its expectation to have cash on hand ranging from $14.5 billion to $16.3 billion, which it plans to distribute to consumers after the reorganisation plan is approved by the Delaware bankruptcy court. Customers are becoming more irritated with the delay and continuing complications surrounding the FTX bankruptcy, despite the fact that FTX has promised refunds and is rolling out a payment strategy.
Thomas Braziel, a crypto researcher with more than 16,000 followers, voiced his doubts about FTX payments on his X page. Upon reviewing the terms of service, he concluded that there is clearly a mismatch between the customer’s balance and the assets indicated in the debtor’s petition during the FTX bankruptcy filing, leading to a shortage of cash to cover everyone’s bills. Thomas went on to provide a remedy to this complication by referencing the Cryptopia case, which included the treatment of different types of assets as distinct assets under the laws of New Zealand and the UK.
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