FTX Digital Meeting Will Be Held On March 15 To Resolve Compensation Claims

Key Points:

• FTX Digital, a Bahamas-based digital asset exchange, will undergo liquidation proceedings after a creditors’ meeting on March 15, 2024.
• The FTX Digital meeting aims to reach a global agreement to manage its financial obligations.
• Legal troubles in 2022, including a license suspension, preceding FTX Digital’s liquidation.

FTX Digital, a subsidiary of FTX Trading, is set to commence its formal liquidation process with the convening of its creditors’ meeting on Friday, March 15, 2024, at The Baha Mar Convention Center in Nassau, Bahamas.

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FTX Digital Meeting Set for March 15

The FTX Digital meeting aims to establish a liquidation committee and provide creditors with crucial information regarding the claims process.

This FTX Digital meeting follows a settlement agreement previously reached by FTX Digital with its debtors. Joint official liquidators, appointed to oversee the process, have successfully negotiated a global agreement expected to streamline the complex management of FTX Digital’s financial obligations.

The company, registered in Bahamas, facilitated exchanges between digital assets and traditional fiat currency, alongside various digital asset exchanges.

Legal Woes Precede FTX Digital’s Formal Liquidation

FTX Digital encountered legal troubles in 2022 when the Securities Commission of the Bahamas presented a winding-up petition against the company, leading to the suspension of its digital asset business license. This prompted the Commercial Division of The Supreme Court of the Bahamas to appoint provisional liquidators, subsequently transitioning to joint official liquidators in November 2023.

The troubles for FTX Digital stemmed from the wider FTX group’s liquidity crisis in late 2022, culminating in bankruptcy filings. The fallout underscored the volatility and regulatory concerns surrounding the digital currency market.