FTX Digital Is Allowed To Extend The Liquidation Process Until August 9

Key Points:

• The current liquidation process of the Bahamian entity FTX Digital has been extended to August 9, 2023.
• The provisional liquidator also filed for bankruptcy in Delaware, USA The court filed a Chapter 15 application.
• Clients of FTX Digital and third-party claim holders who may have claims against the company.

The present liquidation procedure of the Bahamas corporation FTX Digital has been prolonged until August 9, 2023, according to the official website of PricewaterhouseCoopers (PwC), and the provisional liquidator has also filed for bankruptcy in Delaware, USA.

On February 15, the US court issued an order recognizing provisional liquidation as a main foreign procedure, and FTX Digital is not subject to US Chapter 11 bankruptcy proceedings.

Since their appointment by the Supreme Court, the provisional liquidator has been reviewing FTX Digital’s financial situation, investigating the causes of FTX’s global collapse and its impact on the company, attempting to identify and protect assets, and researching all available avenues for the company in order to realize all interests. This effort is under process to maximize the value of the relevant parties.

The provisional liquidator is inviting clients and third-party claim holders who may have claims against FTX Digital to register their contact information with them. Some clients may be unaware that they are customers or creditors of FTX Digital or other FTX Group companies.

The claims procedure includes the following steps: claim registration, login creation in the claims portal, authentication, balance acceptance, and asset transfer. The claims procedure is presently at its first stage, with PwC requesting clients and creditors to enter their contact information.

Moreover, the company indicated in a recent purported email to clients that the entity’s provisional liquidation procedure is independent of, but parallel to, the current US Chapter 11 proceedings.

Customers of FTX.com who have filed claims to businesses subject to US Chapter 11 proceedings will not be barred from registering their information on the FTX Digital claims site, and vice versa.

The Securities Commission of The Bahamas (SCB) instructed the transfer of all digital assets worth more than $3.5 billion in FTX Digital Markets, the Bahamas arm of FTX, to digital wallets managed by the commission, according to a document released by the SCB in December 2022.

DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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Harold

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