FTX Digital Markets Limited, the regulated and licensed entity for the FTX International Platform, has initiated a claim window for creditor distributions. The claim prices for major crypto assets are reportedly $16,871 for BTC, $1,258 for ETH, $16.24 for SOL, and $286 for BNB.
FTX, once a prominent cryptocurrency exchange, filed for bankruptcy in 2022 after a series of management failures and corporate fraud led to its insolvency. While it was still operational, FTX had a native token – FTT which was used to incentivize users and facilitate transactions within its ecosystem.
However, the heavy concentration of FTT ownership within FTX and affiliated entities, including Bankman-Fried’s hedge fund, Alameda Research, raised concerns about market manipulation and speculative investments.
The collapse of FTX was attributed to questionable financial practices, including using the FTT token for speculative bets on other cryptocurrencies. This risky behavior and concerns about financial transparency and investor protection in the crypto industry contributed to FTX’s downfall.
Amid a legal battle faced by its former CEO, and the appointment of a new CEO, FTX Digital Markets has successfully negotiated a settlement with FTX Trading Ltd. and its affiliated debtors under the Chapter 11 Proceedings.
The agreement outlines a process where assets from both FTX Debtors and FTX Digital Markets’ estates are combined. The aim is to coordinate a strategy for distributing funds to creditors by ensuring fairness and consistency in the distribution of assets to FTX.com customers.
FTX Digital is urging creditors and customers to participate in the resolution process by submitting a claim related to their financial interests in the estate. The objective is to align the Bahamian resolution process with the corresponding process in the United States.
According to FTX Digital, the deadline for the submission of claims is May 15, 2024. The intention is to provide an opportunity for all relevant parties to assert their claims before the specified date, ensuring an inclusive and coordinated resolution process.
