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U. S Bankruptcy Court Sets Deadlines for Filing Claims in FTX



In the ongoing FTX Trading Ltd. bankruptcy case, there has been a recent development. The United States Bankruptcy Court for the District of Delaware issued an order that establishes deadlines and procedures for filing client proofs of claim. This court order, titled “Order Establishing Deadlines for Filing Customer Proofs of Claim,” sets a specific deadline for filing customer claims and approves the necessary processes.

In November 2022, FTX Trading Ltd. and its affiliated debtors filed for Chapter 11 bankruptcy protection. Report indicated that the bankrupt cryptocurrency firm owed its customers over $1.6 billion worth of Bitcoin, ultimately leading to the collapse of FTX. Subsequently, a series of legal battles unfolded, resulting in the arrest of SBF, the former CEO of FTX, and exposing the exchange’s flawed systems as the cause of its downfall.

As per the court order, the term “Customer Claim” encompasses any type of claim held by individuals or entities against any of the debtors. This includes claims related to cash, cryptocurrencies, digital assets, and other assets held in FTX Exchange accounts, as well as claims pertaining to investment or trading activities on any FTX Exchange or other exchange operated by the debtors.

According to the ruling, all individuals and businesses with consumer claims against the debtors that arose on or before the Petition Date must file a proof of claim by September 29, 2023. Affected victims will have 30 days from the notice date to submit a claim if the Debtors change or supplement the Schedules.

The court order has been implemented to streamline the claims process and ensure that all eligible claimants can file their claims within the specified deadlines. It also provides clear instructions and guidelines for claimants to follow when submitting their claims.

This development coincides with the progress made by the new management team at cryptocurrency exchange FTX, led by John Ray III, in acquiring assets to repay creditors. So far, they have successfully recovered approximately $7 billion in liquid assets.

In response to the court order, FTX tweeted that they are actively working on processing claims through the portal, Customers will receive updates as soon as information becomes available, as stated in a post on the website.

Due to recent amendments to the filed schedules, the site is set to serve as the “Debtors Customer Claims Portal.” It is expected to be launched in the coming weeks.

Read Also: Egypt grapples with inflation & currency depreciation amid surging Bitcoin 


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