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FTX Digital is an entity in the FTX group incorporated in the Bahamas. The FTX group was headquartered in and operated out of the Bahamas prior to its collapse. FTX Digital was licensed by the Securities Commission of the Bahamas (“SCB”) as a Digital Assets Business and was the principal licensed entity for the majority of products offered by the International (non-US) FTX.com platform. FTX Digital conducted customer onboarding, Know-Your-Customer checks, exchange operations, settlements and held customer fiat for the “FTX.com” or “FTX International” trading platform.

FTX Digital was placed into Provisional Liquidation following the lodgement of a Winding Up Petition by the SCB on 10 November 2022, just prior to the wider bankruptcy of the FTX Group in the US on 11 November 2022. A Winding Up Order was granted against FTX Digital by The Supreme Court of The Bahamas (the “Court”) on 10 November 2023 and the Joint Provisional Liquidators were appointed as Joint Official Liquidators (“JOLs”) at the same hearing. The duties of the JOLs are to wind up the assets of the business and return funds to customers and non-customer creditors.

The FTX group operated globally trading with more than one hundred entities. The FTX Digital liquidation is the Court-mandated process for the orderly liquidation of the FTX Digital operation and legal entity business in the Bahamas. 

Due to the poor internal record keeping and governance of the FTX group, there is not a clear perimeter between the assets and liabilities of FTX Digital, which is subject to an Official Liquidation process in the Bahamas (also known as the Bahamas Process), and FTX Trading Ltd, which is subject to a US Chapter 11 bankruptcy process (“the US Process”).

Following extensive review and analysis, the Liquidators of FTX Digital and FTX Trading Ltd and its affiliates as debtors in possession in the US Process (“US Chapter 11 Debtors”) have concluded that the assets and liabilities of the estates are so irreversibly intermingled that tracing is impossible.

Consequently, the Liquidators of FTX Digital and the US Chapter 11 Debtors have agreed to a Global Settlement Agreement, which among other things, contemplates pooling of assets from both estates so as to allow FTX.com customers to receive the same recoveries. The Settlement also allows the estates to coordinate asset realisations and distributions – allowing customers to lodge a claim in either the Bahamas Process or the US Process. Customers and non-customer creditors entitled to a distribution will receive substantially the same return at substantially the same time, regardless of the process they elect to make a claim in. Customers will be able to make a choice of opting into the Bahamas Process or claiming in the US Process.

The FTX Digital Claim Portal, under the Bahamas process, has been designed to enable creditors to view the balance of their holdings on the FTX.com trading platform, alongside the calculated claim values (at an 11 November 2022 reference date) and to lodge an electronic Proof of Debt form in one place. Furthermore, the FTX Digital Claim Portal has been designed to enable the transfer of claims between original customers and claim purchasers.

The value of scheduled claims is generally calculated on the same conversion rates in both the Bahamas Process and the US Process. The claim values set out in the FTX Digital Claim Portal have been calculated in accordance with Court orders granted respectively in the Supreme Court of the Bahamas and the US Bankruptcy Court.

Claims were valued based on FTX.com platform records of the closing balances of fiat currency, any cryptocurrency tokens in the account and open derivative positions as at 11 November 2022 at 10:00am ET/3:00pm UTC. Where required, manual adjustments were made, based on available information, to the closing balance for any deposits or withdrawals where the platform records are known to not reflect actual deposits received or processed withdrawals.

Adjusted closing balances were used to convert each balance into a USD equivalent value using conversion rates based on the Digital Assets Conversion Table set out in the Estimation Order granted by the Supreme Court of the Bahamas on 12 June 2024. Please refer to the Order granted for more information.

Pursuant to the Order 8 rule 2(2) of the Chapter 308 Companies Liquidation Rules 2012 of the Statue Law of the Bahamas, the First Creditor’s Meeting was held in order to conduct a vote on the appointment of a liquidation committee. The First Creditor’s Meeting was held on 15 March 2024 at 10:30am EDT at Baha Mar Convention Center, 1 Baha Mar Blvd, Nassau, The Bahamas. 

Attendance at the First Creditors’ Meeting was not mandatory and does not impact the ability of a customer or non-customer creditor to submit a claim in due course and to establish their claim. Note, that submitting a “First Creditors’ Meeting Voting and Proof of Debt Form” does not automatically qualify you for a distribution.

Creditors who were unable to attend could still register to watch the virtual broadcast or could appoint a chairperson or an individual as their proxy to attend and vote in the First Creditors’ Meeting in person on their behalf.

Creditors could appoint the chair, or another individual as their proxy by filling in and submitting the First Creditor Meeting Voting and Proof of Debt form, which was to be submitted before 10 March 2024 at 5.00pm EDT. The JOLs took the opportunity to provide all creditors with an update on the liquidation at the meeting.

The First Creditors’ Meeting Voting and Proof of Debt Form is solely for voting purposes in the First Creditors’ Meeting. This form is not for the purpose of adjudicating claims and qualifying customers or non-customer creditors for distributions. In order to avoid losing your entitlement to a distribution from the Bahamas Process, you are encouraged to submit a proof of debt form with your supporting documents on the claim portal website before the current scheduled Claim Bar Date. 

Customers and non-customer creditors should claim liabilities against the FTX Digital estate, including all outstanding principal and accrued but unpaid interest, incurred on or before the Valuation Date (i.e. 11 November 2022). Note, the calculated claim values are based on the estimation motion at the petition date, which is subject to change.

We are aware that a number of customers have sold or transferred their claim to third parties. If you wish to transfer your claim please contact the JOLs’ liquidation team at gbl_fdm_creditors@pwc.com for instructions of how to do so.

If you have an FTX account and believe that you may have a claim against FTX Digital Markets Ltd. (In Official Liquidation) you can create an account via the Joint Official Liquidators’ (“JOLs”) FTX Digital Claim Portal: https://digitalmarketsclaim.pwc.com where you can lodge an electronic claim and view and accept the balance on your FTX.com customer account (according to JOLs’ records). Please follow the User Guide for guidance on this and the subsequent steps to submit a claim. 

Customers must submit their claims and make their election before 16 August 2024.

You may have unsubscribed from our mailing lists. If you have unsubscribed from our emails you will not receive a “one-time PIN”. You can update this by selecting “Unsubscribe Preferences” at the end of any email sent from claims@ftx.pwc.com.

In order to change your email address, please contact Customer Support at support@ftx.com detailing your request. You could be asked to answer questions about your account or be required to complete a KYC/Liveness Check before this change can be made. This is to protect the security of your account.

Once you have received confirmation that your email address has been changed, please respond to this email notifying us. We will be able to update your email address in the system and you will be able to link your account to the FTX portal.

Once you progress to the KYC (“Know Your Client”) steps you will be asked to confirm your contact details, at this point you will be able to update the fields you require. This process will commence once we progress to the “Identity Verification” stage (i.e. stage 4) of the FTX Digital Claim process which is due to commence in August early September.

Please attach any evidence that corroborates your claim. If you are unsure what to provide, please outline in the comments any relevant information you think you may have. Once you have submitted your claim you can upload additional documents by selecting “View Documents” on your dashboard.

If you wish to access your transaction history, or data, please log in to claims.ftx.com using your FTX login credentials.

The Joint Official Liquidators (“JOLs”) currently expect customers to be repaid in full of their claim value based on conversion rates as at 11 November 2022, plus post petition interest. To the extent that surplus proceeds are available to repay customer balances in full, customers are entitled to an ex gratia payment representing post petition interest calculated at a rate of 9.0% p.a. of the outstanding balance accruing on a simple interest basis (i.e. non compounding) from 11 November 2022, until customer principal and interest balances are paid in full. In addition customers may be entitled to a share of incremental recoveries from the Supplemental Remission Fund (as set out the the Chapter 11 Reorganisation plan).

You will find further information on interest in sections 3.1 and 3.5 of the FTX DM Election Process Overview available on this website.

From 10 July 2024 until the Election Deadline of 4:00PM Prevailing Eastern Time 16 August 2024, FTX.com customers (the “Dotcom Customers”) can choose whether they wish to participate in either the Bahamas Process or alternatively the US Process to receive substantially the same value in distributions on or around the same dates, subject to the US Debtors Plan of Reorganisation becoming effective. 

• If you wish to participate in the Bahamas Process, please refer to section 2.4 ‘How to participate in the Bahamas Process’ of the Election Process Overview and follow P.9 and P.35-42 of the User Guide for guidance on this.

• If you wish to participate in the US Process, please refer to section 2.5 ‘How to participate in the US Process’ of the Election Process Overview”.

Please be aware that you cannot participate in both processes. You may refer to section 2.6 ‘Implications of making contradicting elections or no election’ of the Election Process Overview for more information.

The Joint Official Liquidators (“JOLs”) are unable to provide advice to customers as to which process they should elect. However the JOLs have released the FTX DM Election Process Overview. This provides helpful information at Section 2 in relation to the Claim and election process. In making your choice you may find Section 2.2 The Bahamas Process and the US Process are aligned in key aspects and Section 2.6 Implications of making contradicting elections or no election helpful.

The FTX DM Election Process Overview is not the only source of information that customers should consider when deciding whether to participate in the Bahamas Process or the US Process. It is recommended that customers review all information available from both the US Debtors (such as the Plan and Disclosure Statement located at https://restructuring.ra.kroll.com/FTX/ ) and the JOLs before deciding.

This process will commence once we progress to the “Identity Verification” stage (i.e. stage 4) of the FTX Digital Claim process. This is expected to start in early September. You will be notified when you can commence the Identity Verification stage via the FTX Digital Claim Portal. 

If you have previously provided KYC information in the US Process, to the extent possible and permitted by law, the Joint Official Liquidators (“JOLs”) will use this information to minimise the need for you to repeat steps you may have already performed. By confirming your election to have your claims dealt with in the Bahamas Process, you are required to acknowledge and agree to make any KYC information you have submitted to the US Debtors accessible to FTX Digital Markets Ltd. (In Official Liquidation) (“FTX Digital”), its agents and representatives including the JOLs, and to authorise the US Debtors to make such KYC information available to FTX Digital, its agents and representatives including the JOLs.

You will find further information on the KYC process in Section 2.2 and 3.3 of the FTX DM Election Process Overview.

Work is still ongoing to realise the maximum possible value for all creditors and therefore a definitive first distribution date cannot be confirmed at this stage. Amongst other things, this timing is dependent upon the timing of the launch of the US Debtors Plan of Reorganisation and confirmation of the plan. The FTX Digital Markets Joint Official Liquidators (“JOLs”) will write to creditors when there is an update on timing and method of distribution to creditors.You can view the reorganisation plan on the JOLs case website: https://www.pwc.com/bs/fdm

You will find further information on the distribution process in the FTX DM Election Process Overview on the JOLs case website.