The bankrupt cryptocurrency exchange FTX has extended the deadline for creditors to submit their claims, pushing the final date to the end of July or early August 2025. This 10- to 12-week extension offers affected customers additional time to file proofs of debt under the ongoing restructuring process. While this move aims to improve clarity and participation, it has also intensified concerns among creditors awaiting repayment after one of the most significant collapses in crypto history.
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Understanding the Extended Claims Deadline
FTX’s joint official liquidators have officially delayed the deadline for submitting claims in the Bahamas proceedings—a critical component of the global bankruptcy resolution. Originally set for an earlier date, the new timeline now allows creditors until late summer 2025 to formally register their debts.
Sunil Khandelwal, a prominent FTX creditor and advocate known as “FTX Creditor Champion,” confirmed the update via a post on X (formerly Twitter), citing a 10–12 week extension for the Bar Date in the Bahamas. The Bar Date is a legal cutoff by which creditors must file their claims to be eligible for repayment.
"Bahamas Bar date extended 10-12 weeks: End of July/August"
— Sunil (FTX Creditor Champion)
This extension applies specifically to customers participating in the Bahamian insolvency process. However, claimants must choose between the Bahamas procedure and the U.S. bankruptcy proceedings—dual participation is not permitted. This decision carries long-term implications for payout timelines, currency of repayment, and legal jurisdiction.
Key Differences Between U.S. and Bahamas Claim Processes
While both jurisdictions aim to fairly compensate creditors, there are notable procedural distinctions:
- Legal Framework: The U.S. process operates under Chapter 11 bankruptcy laws, offering more structured creditor protections and transparency.
- Asset Pool: The Bahamas proceedings focus on FTX Digital Markets Ltd., the international arm of the exchange, while the U.S. case covers FTX Trading Ltd. and affiliated entities.
- Repayment Currency: Although final details are pending, early indications suggest repayments may be made in USD or equivalent stable assets rather than volatile cryptocurrencies.
- Claim Submission: The U.S. process has already seen high creditor engagement due to clearer documentation and court oversight.
A comprehensive disclosure statement outlining these differences will be released in June 2025. Once published, creditors will have 6 to 8 weeks to evaluate their options and formally elect which jurisdiction they wish to pursue for recovery.
Will Creditors Be Repaid in Full—With Interest?
In a surprising development, FTX’s latest distribution plan includes a commitment to repay all verified creditors in full, plus interest. This pledge, while unprecedented in large-scale crypto bankruptcies, remains conditional on asset liquidation outcomes and court approvals.
The company has already recovered over $15 billion in assets through asset sales, legal settlements, and reclaimed digital holdings. These funds are being held in reserve to support future distributions. However, experts caution that "full repayment" may take years to materialize, especially given ongoing litigation with former executives and third-party debtors.
Frequently Asked Questions (FAQ)
Q: Can I file claims in both the U.S. and Bahamas procedures?
A: No. Creditors must choose one jurisdiction—either the U.S. Chapter 11 process or the Bahamian liquidation—to avoid duplicate claims and potential disqualification.
Q: What happens if I miss the new August deadline?
A: Missing the Bar Date typically results in forfeiture of your right to compensation unless exceptional circumstances are recognized by the court.
Q: Will I be paid in cryptocurrency or fiat?
A: While not yet finalized, current plans indicate payouts will likely be made in USD or USD-pegged stablecoins to minimize volatility risks.
Q: How is interest calculated on my claim?
A: Interest rates and accrual periods will be detailed in the official disclosure document expected in June 2025. They are expected to follow standard insolvency conventions.
Q: Are retail users prioritized over institutional creditors?
A: Under both U.S. and Bahamian law, certain classes of claims (like customer deposits) may receive priority treatment, but exact hierarchies depend on final court rulings.
Q: When will the first repayments begin?
A: Initial distributions are anticipated in late 2025 or early 2026, pending approval of the reorganization plan and completion of asset monetization.
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Moving Forward: Transparency and Trust Restoration
The extension of the claims deadline reflects FTX’s effort to enhance inclusivity and procedural fairness. By providing more time and clearer information, the liquidators aim to reduce errors, increase participation rates, and build trust with affected users.
However, challenges remain. Legal battles with former executives—including Sam Bankman-Fried—and disputes over asset ownership continue to complicate recovery efforts. Additionally, market volatility impacts the valuation of remaining crypto holdings in the estate.
Despite these hurdles, the commitment to full repayment—even with interest—sets a potential precedent for future crypto insolvencies. If successfully executed, it could reinforce investor confidence in regulated restructuring mechanisms within the digital asset space.
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Final Thoughts
The FTX saga continues to unfold, with millions of dollars at stake and thousands of creditors waiting for resolution. The delayed submission deadline offers a crucial window for claimants to prepare and make informed decisions. As the June disclosure document approaches, users are encouraged to review their account histories, gather necessary documentation, and consult financial advisors when necessary.
While delays can be frustrating, they also reflect a more deliberate approach—one that prioritizes accuracy over speed. For the crypto industry as a whole, how this case concludes could shape regulatory standards, customer protection policies, and recovery expectations for years to come.
As developments progress, staying informed remains the best strategy for every creditor impacted by the FTX collapse.