The FTX debt liquidation has entered a new phase, and creditors should declare as soon as possible.

With the sentencing of 25 years for the actual controller of the FTX case, this shocking incident in the cryptocurrency industry has come to a temporary conclusion. For ordinary investors and creditors, the most concerning issue is the progress of the FTX bankruptcy liquidation case, which directly relates to their ability to recover funds. As the largest bankruptcy liquidation case in the world today and the first large-scale global liquidation case of crypto assets, the handling of the FTX case will have far-reaching implications for similar cases in the future.

Currently, the FTX liquidation entity and claims portal have been established and opened, and the repayment to creditors is about to begin. This article will provide creditors with detailed filing guidelines.

Background of the FTX Case and Overview of the Liquidation Team

FTX was a top cryptocurrency exchange that rivaled some well-known trading platforms, headquartered in the Bahamas, with its main operations focused in the United States. Before its collapse, FTX had hundreds of affiliated companies and over a million customers, with a valuation of up to $32 billion.

The collapse of FTX began with a media report that revealed asset issues at its affiliated company, Alameda Research. This was followed by a spread of panic in the market, making it difficult for FTX to continue.

Due to the complex legal structure of FTX, its bankruptcy liquidation involves multiple jurisdictions. The courts in the Bahamas and the United States have appointed liquidators who have reached an agreement to jointly advance the liquidation process. Currently, the joint official liquidator appointed by the Bahamian court, (JOL), has established a dedicated website for creditor claims, which will uniformly handle all types of claims. The deadline for claims is May 15, 2024.

FTX Creditor Claim Guide

1. Register a claim account

First, visit the FTX creditor declaration website and click the blue button in the upper right corner to register an account. You need to fill in information such as your name, email, and location. Note to use a reliable email, as subsequent logins will require email verification.

Choose the type of claimant based on your own situation:

• Individual clients: Users who register with FTX in their personal name
• Institutional clients: Users who register FTX accounts as legal entities.
• Non-Customer Creditors: Entities with other creditor-debtor relationships with FTX

2. Register debt claim information

Individual or institutional customers need to submit FTX account registration information to associate the account.

After completing the association, check whether the displayed account balance is accurate. If there are no objections, confirm to proceed to the claim process.

If there are disputes regarding the displayed balance, additional materials must be provided through the dispute procedure. It is recommended to consult professionals to prepare the declaration materials that meet the requirements.

For the assigned FTX bankruptcy claims, a complete assignment proof must be submitted. If there is a guarantee for the claims, the guarantee certificate should also be submitted.

The KYC identity verification process is finally completed, and the debt declaration is also completed.

Explanation about duplicate declarations

Many investors have previously declared their claims on the KROLL platform in the United States. If they declare again on the Bahamas platform, the following legal effects will automatically occur:

1. Considered as a withdrawal of the claim for debts in the United States.
2. The claim is subject to the jurisdiction of the Bahamian courts.

It should be noted that the United States and the Bahamas have reached a consensus on the liquidation of bankruptcy assets, which will be distributed as a whole. Therefore, declaring on different platforms will not affect the final compensation, but may affect procedural matters such as the recognition of claims and the handling of objections. It is recommended to consult a professional lawyer before making a choice.