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FTX Digital Markets Invites Creditors To Submit Claims: Report

Published 19/02/2024, 06:06
© Reuters.  FTX Digital Markets Invites Creditors To Submit Claims: Report

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  • FTX Digital Markets has invited customers and creditors to submit their personal details and claims.
  • The move is part of the platform’s initiative to reimburse the customer funds that were locked on the platform since its 2022 fall.
  • The creditors who submit their details will be led to an electronic portal where they can submit their electronic claims.

In a recent update, FTX Digital Markets, a Bahamian subsidiary of the bankrupt FTX, has invited customers and creditors to submit a claim in their estate. The current move is a step towards reimbursing customer funds locked on the exchange since its fall in November 2022.

According to the update, the company asked its customers and creditors to submit their primary contact details through the claims portal. These creditors who submit their details will soon receive an electronic portal link where they will be able to enter their electronic claims.

FTX and its subsidiaries have been endeavoring for a long time to return the customer funds. Following the court’s permission to liquidate FTX’s $873 million trust assets, the firm started putting effort into framing reimbursement plans.

On December 19, 2023, FTX Digital Markets won a landmark settlement with FTX Trading Ltd. The deal placed FTX Digital Markets as the operational lead in the Bahamas to maximize recoveries for customers and creditors. Peter Greaves, Joint Official Liquidator, stated, “For the millions of customers of the FTX Group, based across 230 jurisdictions, this is a landmark breakthrough allowing for collaboration in the monetization of assets and the adjudication of customer claims, with an approach that provides a roadmap to accelerate the return of funds to customers.”

On August 2023, FTX announced the launch of a draft creditor-repayment plan intended to initiate repayments. In addition, the platform has also hinted at FTX’s efforts to reboot it as FTX.com for international customers.

However, in a later development, the company dropped its plans to relaunch FTX to completely concentrate on repayment programs. FTX attorney Andy Dietderich pointed out the company’s failure to find adequate funds and capital to invest in the rebooting program, which led to its abandonment.

The post FTX Digital Markets Invites Creditors To Submit Claims: Report appeared first on Coin Edition.

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